Correlation Between Vietnam Technological and Investment
Can any of the company-specific risk be diversified away by investing in both Vietnam Technological and Investment 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 Investment 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 Investment And Construction, you can compare the effects of market volatilities on Vietnam Technological and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Technological and Investment.
Diversification Opportunities for Vietnam Technological and Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vietnam and Investment is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Technological And and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Vietnam Technological i.e., Vietnam Technological and Investment go up and down completely randomly.
Pair Corralation between Vietnam Technological and Investment
Assuming the 90 days trading horizon Vietnam Technological And is expected to generate 0.97 times more return on investment than Investment. However, Vietnam Technological And is 1.03 times less risky than Investment. It trades about -0.1 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.37 per unit of risk. If you would invest 2,430,000 in Vietnam Technological And on October 17, 2024 and sell it today you would lose (70,000) from holding Vietnam Technological And or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vietnam Technological And vs. Investment And Construction
Performance |
| Timeline |
| Vietnam Technological And |
| Investment And Const |
Vietnam Technological and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Technological and Investment
The main advantage of trading using opposite Vietnam Technological and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Technological position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Vietnam Technological vs. Nafoods Group JSC | Vietnam Technological vs. TDT Investment and | Vietnam Technological vs. Fecon Mining JSC | Vietnam Technological vs. PV2 Investment JSC |
| Investment vs. Elcom Technology Communications | Investment vs. VietinBank Securities JSC | Investment vs. Military Insurance Corp | Investment vs. Vietnam Technological And |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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