Correlation Between VINACONEX and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both VINACONEX and Saigon Beer 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 VINACONEX and Saigon Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VINACONEX 21 and Saigon Beer Alcohol, you can compare the effects of market volatilities on VINACONEX and Saigon Beer 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 VINACONEX with a short position of Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of VINACONEX and Saigon Beer.
Diversification Opportunities for VINACONEX and Saigon Beer
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VINACONEX and Saigon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding VINACONEX 21 and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol and VINACONEX 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 VINACONEX 21 are associated (or correlated) with Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of VINACONEX i.e., VINACONEX and Saigon Beer go up and down completely randomly.
Pair Corralation between VINACONEX and Saigon Beer
Assuming the 90 days trading horizon VINACONEX 21 is expected to generate 4.33 times more return on investment than Saigon Beer. However, VINACONEX is 4.33 times more volatile than Saigon Beer Alcohol. It trades about 0.22 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about 0.05 per unit of risk. If you would invest 570,000 in VINACONEX 21 on September 4, 2024 and sell it today you would earn a total of 80,000 from holding VINACONEX 21 or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
VINACONEX 21 vs. Saigon Beer Alcohol
Performance |
| Timeline |
| VINACONEX 21 |
| Saigon Beer Alcohol |
VINACONEX and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VINACONEX and Saigon Beer
The main advantage of trading using opposite VINACONEX and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VINACONEX position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| VINACONEX vs. Saigon Beer Alcohol | VINACONEX vs. Materials Petroleum JSC | VINACONEX vs. Binh Duong Trade | VINACONEX vs. Military Insurance Corp |
| Saigon Beer vs. Vietnam Dairy Products | Saigon Beer vs. Asia Commercial Bank | Saigon Beer vs. Petrolimex Insurance Corp | Saigon Beer vs. Transimex Transportation JSC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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