Correlation Between Vina2 Investment and Hai An
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and Hai An 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 Hai An 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 Hai An Transport, you can compare the effects of market volatilities on Vina2 Investment and Hai An 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 Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Hai An.
Diversification Opportunities for Vina2 Investment and Hai An
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vina2 and Hai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport 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 Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and Hai An go up and down completely randomly.
Pair Corralation between Vina2 Investment and Hai An
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 1.32 times more return on investment than Hai An. However, Vina2 Investment is 1.32 times more volatile than Hai An Transport. It trades about 0.11 of its potential returns per unit of risk. Hai An Transport is currently generating about 0.14 per unit of risk. If you would invest 900,000 in Vina2 Investment and on September 13, 2024 and sell it today you would earn a total of 60,000 from holding Vina2 Investment and or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vina2 Investment and vs. Hai An Transport
Performance |
| Timeline |
| Vina2 Investment |
| Hai An Transport |
Vina2 Investment and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Hai An
The main advantage of trading using opposite Vina2 Investment and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| Vina2 Investment vs. FIT INVEST JSC | Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. An Phat Plastic | Vina2 Investment vs. Alphanam ME |
| Hai An vs. 1369 Construction JSC | Hai An vs. Techno Agricultural Supplying | Hai An vs. Saigon Viendong Technology | Hai An vs. Binh Duong Construction |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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