Correlation Between Vietnam Technological and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological and 1369 Construction 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 1369 Construction 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 1369 Construction JSC, you can compare the effects of market volatilities on Vietnam Technological and 1369 Construction 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 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and 1369 Construction.
Diversification Opportunities for Vietnam Technological and 1369 Construction
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vietnam and 1369 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC 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 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Vietnam Technological i.e., Vietnam Technological and 1369 Construction go up and down completely randomly.
Pair Corralation between Vietnam Technological and 1369 Construction
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 0.79 times more return on investment than 1369 Construction. However, Vietnam Technological And is 1.26 times less risky than 1369 Construction. It trades about -0.01 of its potential returns per unit of risk. 1369 Construction JSC is currently generating about -0.1 per unit of risk. If you would invest 2,405,000 in Vietnam Technological And on October 11, 2024 and sell it today you would lose (10,000) from holding Vietnam Technological And or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Technological And vs. 1369 Construction JSC
Performance |
| Timeline |
| Vietnam Technological And |
| 1369 Construction JSC |
Vietnam Technological and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and 1369 Construction
The main advantage of trading using opposite Vietnam Technological and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| Vietnam Technological vs. Binh Duong Construction | Vietnam Technological vs. PV2 Investment JSC | Vietnam Technological vs. Vu Dang Investment | Vietnam Technological vs. Petrolimex Information Technology |
| 1369 Construction vs. Vietnam Technological And | 1369 Construction vs. Military Insurance Corp | 1369 Construction vs. PVI Reinsurance Corp | 1369 Construction vs. AgriBank Securities JSC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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