Correlation Between Vietnam Technological and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological and Hanoi Beer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vietnam Technological and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Technological And and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Vietnam Technological and Hanoi Beer and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vietnam Technological with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and Hanoi Beer.
Diversification Opportunities for Vietnam Technological and Hanoi Beer
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and Hanoi is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Vietnam Technological is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vietnam Technological And are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Vietnam Technological i.e., Vietnam Technological and Hanoi Beer go up and down completely randomly.
Pair Corralation between Vietnam Technological and Hanoi Beer
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 3.93 times more return on investment than Hanoi Beer. However, Vietnam Technological is 3.93 times more volatile than Hanoi Beer Alcohol. It trades about 0.05 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about 0.01 per unit of risk. If you would invest 1,563,833 in Vietnam Technological And on October 28, 2024 and sell it today you would earn a total of 911,167 from holding Vietnam Technological And or generate 58.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.63% |
| Values | Daily Returns |
Vietnam Technological And vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Vietnam Technological And |
| Hanoi Beer Alcohol |
Vietnam Technological and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and Hanoi Beer
The main advantage of trading using opposite Vietnam Technological and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological position performs unexpectedly, Hanoi Beer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Vietnam Technological vs. FIT INVEST JSC | Vietnam Technological vs. Damsan JSC | Vietnam Technological vs. An Phat Plastic | Vietnam Technological vs. APG Securities Joint |
| Hanoi Beer vs. PC3 Investment JSC | Hanoi Beer vs. Japan Vietnam Medical | Hanoi Beer vs. Thanh Dat Investment | Hanoi Beer vs. Danang Education Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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