Correlation Between Vietnam Technological and COMA 18
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological and COMA 18 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 COMA 18 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 COMA 18 JSC, you can compare the effects of market volatilities on Vietnam Technological and COMA 18 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 COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and COMA 18.
Diversification Opportunities for Vietnam Technological and COMA 18
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vietnam and COMA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 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 COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Vietnam Technological i.e., Vietnam Technological and COMA 18 go up and down completely randomly.
Pair Corralation between Vietnam Technological and COMA 18
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 0.3 times more return on investment than COMA 18. However, Vietnam Technological And is 3.3 times less risky than COMA 18. It trades about 0.26 of its potential returns per unit of risk. COMA 18 JSC is currently generating about 0.05 per unit of risk. If you would invest 2,360,000 in Vietnam Technological And on November 4, 2024 and sell it today you would earn a total of 115,000 from holding Vietnam Technological And or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Technological And vs. COMA 18 JSC
Performance |
| Timeline |
| Vietnam Technological And |
| COMA 18 JSC |
Vietnam Technological and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and COMA 18
The main advantage of trading using opposite Vietnam Technological and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Vietnam Technological vs. Sea Air Freight | Vietnam Technological vs. Tienlen Steel Corp | Vietnam Technological vs. Hanoi Beer Alcohol | Vietnam Technological vs. Tri Viet Management |
| COMA 18 vs. Military Insurance Corp | COMA 18 vs. Hai An Transport | COMA 18 vs. Century Synthetic Fiber | COMA 18 vs. Tri Viet Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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