Correlation Between Tri Viet and HNX
Can any of the company-specific risk be diversified away by investing in both Tri Viet and HNX 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 Tri Viet and HNX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and HNX, you can compare the effects of market volatilities on Tri Viet and HNX 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 Tri Viet with a short position of HNX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and HNX.
Diversification Opportunities for Tri Viet and HNX
Good diversification
The 3 months correlation between Tri and HNX is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management and HNX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX and Tri Viet 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 Tri Viet Management are associated (or correlated) with HNX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX has no effect on the direction of Tri Viet i.e., Tri Viet and HNX go up and down completely randomly.
Pair Corralation between Tri Viet and HNX
Assuming the 90 days trading horizon Tri Viet Management is expected to generate 2.86 times more return on investment than HNX. However, Tri Viet is 2.86 times more volatile than HNX. It trades about 0.08 of its potential returns per unit of risk. HNX is currently generating about 0.02 per unit of risk. If you would invest 480,000 in Tri Viet Management on September 3, 2024 and sell it today you would earn a total of 520,000 from holding Tri Viet Management or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.12% |
| Values | Daily Returns |
Tri Viet Management vs. HNX
Performance |
| Timeline |
Tri Viet and HNX Volatility Contrast
Predicted Return Density |
| Returns |
Tri Viet Management
Pair trading matchups for Tri Viet
HNX
Pair trading matchups for HNX
Pair Trading with Tri Viet and HNX
The main advantage of trading using opposite Tri Viet and HNX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet position performs unexpectedly, HNX 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 HNX will offset losses from the drop in HNX's long position.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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