Correlation Between Vina2 Investment and AgriBank Securities
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and AgriBank 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 Vina2 Investment and AgriBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vina2 Investment and and AgriBank Securities JSC, you can compare the effects of market volatilities on Vina2 Investment and AgriBank 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 Vina2 Investment with a short position of AgriBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and AgriBank Securities.
Diversification Opportunities for Vina2 Investment and AgriBank Securities
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vina2 and AgriBank is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and AgriBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriBank Securities JSC and Vina2 Investment 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 Vina2 Investment and are associated (or correlated) with AgriBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriBank Securities JSC has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and AgriBank Securities go up and down completely randomly.
Pair Corralation between Vina2 Investment and AgriBank Securities
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 2.52 times more return on investment than AgriBank Securities. However, Vina2 Investment is 2.52 times more volatile than AgriBank Securities JSC. It trades about -0.12 of its potential returns per unit of risk. AgriBank Securities JSC is currently generating about -0.35 per unit of risk. If you would invest 960,000 in Vina2 Investment and on October 12, 2024 and sell it today you would lose (60,000) from holding Vina2 Investment and or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vina2 Investment and vs. AgriBank Securities JSC
Performance |
| Timeline |
| Vina2 Investment |
| AgriBank Securities JSC |
Vina2 Investment and AgriBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and AgriBank Securities
The main advantage of trading using opposite Vina2 Investment and AgriBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, AgriBank 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 AgriBank Securities will offset losses from the drop in AgriBank Securities' long position.| Vina2 Investment vs. Pacific Petroleum Transportation | Vina2 Investment vs. South Basic Chemicals | Vina2 Investment vs. PetroVietnam Transportation Corp | Vina2 Investment vs. Hai An Transport |
| AgriBank Securities vs. Vina2 Investment and | AgriBank Securities vs. Investment And Construction | AgriBank Securities vs. HUD1 Investment and | AgriBank Securities vs. SCG Construction 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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