Correlation Between Vina2 Investment and Song Hong
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and Song Hong 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 Song Hong 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 Song Hong Garment, you can compare the effects of market volatilities on Vina2 Investment and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Song Hong.
Diversification Opportunities for Vina2 Investment and Song Hong
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vina2 and Song is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and Song Hong Garment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Garment 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Garment has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and Song Hong go up and down completely randomly.
Pair Corralation between Vina2 Investment and Song Hong
Assuming the 90 days trading horizon Vina2 Investment and is expected to under-perform the Song Hong. In addition to that, Vina2 Investment is 1.84 times more volatile than Song Hong Garment. It trades about -0.02 of its total potential returns per unit of risk. Song Hong Garment is currently generating about 0.39 per unit of volatility. If you would invest 4,635,000 in Song Hong Garment on August 30, 2024 and sell it today you would earn a total of 635,000 from holding Song Hong Garment or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vina2 Investment and vs. Song Hong Garment
Performance |
| Timeline |
| Vina2 Investment |
| Song Hong Garment |
Vina2 Investment and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Song Hong
The main advantage of trading using opposite Vina2 Investment and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| Vina2 Investment vs. Elcom Technology Communications | Vina2 Investment vs. Hochiminh City Metal | Vina2 Investment vs. Pacific Petroleum Transportation | Vina2 Investment vs. Nam Kim Steel |
| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong 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 Stocks Directory module to find actively traded stocks across global markets.
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