Correlation Between Viet Thang and VietinBank Securities
Can any of the company-specific risk be diversified away by investing in both Viet Thang and VietinBank Securities 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 Viet Thang and VietinBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viet Thang Corp and VietinBank Securities JSC, you can compare the effects of market volatilities on Viet Thang and VietinBank Securities 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 Viet Thang with a short position of VietinBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viet Thang and VietinBank Securities.
Diversification Opportunities for Viet Thang and VietinBank Securities
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Viet and VietinBank is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Viet Thang Corp and VietinBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VietinBank Securities JSC and Viet Thang 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 Viet Thang Corp are associated (or correlated) with VietinBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VietinBank Securities JSC has no effect on the direction of Viet Thang i.e., Viet Thang and VietinBank Securities go up and down completely randomly.
Pair Corralation between Viet Thang and VietinBank Securities
Assuming the 90 days trading horizon Viet Thang Corp is expected to generate 0.67 times more return on investment than VietinBank Securities. However, Viet Thang Corp is 1.48 times less risky than VietinBank Securities. It trades about -0.04 of its potential returns per unit of risk. VietinBank Securities JSC is currently generating about -0.07 per unit of risk. If you would invest 1,725,000 in Viet Thang Corp on September 3, 2024 and sell it today you would lose (130,000) from holding Viet Thang Corp or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.49% |
| Values | Daily Returns |
Viet Thang Corp vs. VietinBank Securities JSC
Performance |
| Timeline |
| Viet Thang Corp |
| VietinBank Securities JSC |
Viet Thang and VietinBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viet Thang and VietinBank Securities
The main advantage of trading using opposite Viet Thang and VietinBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viet Thang position performs unexpectedly, VietinBank Securities 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 VietinBank Securities will offset losses from the drop in VietinBank Securities' long position.| Viet Thang vs. Telecoms Informatics JSC | Viet Thang vs. LDG Investment JSC | Viet Thang vs. PV2 Investment JSC | Viet Thang vs. 577 Investment Corp |
| VietinBank Securities vs. FIT INVEST JSC | VietinBank Securities vs. Damsan JSC | VietinBank Securities vs. An Phat Plastic | VietinBank Securities 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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