Correlation Between Vina2 Investment and Nam Long
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and Nam Long 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 Nam Long 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 Nam Long Investment, you can compare the effects of market volatilities on Vina2 Investment and Nam Long 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 Nam Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Nam Long.
Diversification Opportunities for Vina2 Investment and Nam Long
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vina2 and Nam is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and Nam Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nam Long Investment 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 Nam Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nam Long Investment has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and Nam Long go up and down completely randomly.
Pair Corralation between Vina2 Investment and Nam Long
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 1.85 times more return on investment than Nam Long. However, Vina2 Investment is 1.85 times more volatile than Nam Long Investment. It trades about 0.12 of its potential returns per unit of risk. Nam Long Investment is currently generating about -0.1 per unit of risk. If you would invest 790,000 in Vina2 Investment and on September 2, 2024 and sell it today you would earn a total of 140,000 from holding Vina2 Investment and or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Vina2 Investment and vs. Nam Long Investment
Performance |
| Timeline |
| Vina2 Investment |
| Nam Long Investment |
Vina2 Investment and Nam Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Nam Long
The main advantage of trading using opposite Vina2 Investment and Nam Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, Nam Long 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 Nam Long will offset losses from the drop in Nam Long'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 |
| Nam Long vs. Vina2 Investment and | Nam Long vs. LDG Investment JSC | Nam Long vs. South Basic Chemicals | Nam Long vs. Tien Giang Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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