Correlation Between Vietnam Technological and Vietnam Airlines
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological and Vietnam Airlines 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 Vietnam Airlines 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 Vietnam Airlines JSC, you can compare the effects of market volatilities on Vietnam Technological and Vietnam Airlines 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 Vietnam Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and Vietnam Airlines.
Diversification Opportunities for Vietnam Technological and Vietnam Airlines
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and Vietnam is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And and Vietnam Airlines JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Airlines 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 Vietnam Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Airlines JSC has no effect on the direction of Vietnam Technological i.e., Vietnam Technological and Vietnam Airlines go up and down completely randomly.
Pair Corralation between Vietnam Technological and Vietnam Airlines
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 1.9 times more return on investment than Vietnam Airlines. However, Vietnam Technological is 1.9 times more volatile than Vietnam Airlines JSC. It trades about 0.04 of its potential returns per unit of risk. Vietnam Airlines JSC is currently generating about 0.06 per unit of risk. If you would invest 1,345,624 in Vietnam Technological And on August 31, 2024 and sell it today you would earn a total of 1,014,376 from holding Vietnam Technological And or generate 75.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Technological And vs. Vietnam Airlines JSC
Performance |
| Timeline |
| Vietnam Technological And |
| Vietnam Airlines JSC |
Vietnam Technological and Vietnam Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and Vietnam Airlines
The main advantage of trading using opposite Vietnam Technological and Vietnam Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological position performs unexpectedly, Vietnam Airlines 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 Vietnam Airlines will offset losses from the drop in Vietnam Airlines' long position.| Vietnam Technological vs. FIT INVEST JSC | Vietnam Technological vs. Damsan JSC | Vietnam Technological vs. An Phat Plastic | Vietnam Technological vs. Alphanam ME |
| Vietnam Airlines vs. Song Hong Garment | Vietnam Airlines vs. Alphanam ME | Vietnam Airlines vs. Hochiminh City Metal | Vietnam Airlines vs. Atesco Industrial Cartering |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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