Correlation Between Vina2 Investment and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Vina2 Investment and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Vincom Retail.
Diversification Opportunities for Vina2 Investment and Vincom Retail
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vina2 and Vincom is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and Vincom Retail go up and down completely randomly.
Pair Corralation between Vina2 Investment and Vincom Retail
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 3.81 times more return on investment than Vincom Retail. However, Vina2 Investment is 3.81 times more volatile than Vincom Retail JSC. It trades about 0.09 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.01 per unit of risk. If you would invest 840,000 in Vina2 Investment and on August 25, 2024 and sell it today you would earn a total of 40,000 from holding Vina2 Investment and or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vina2 Investment and vs. Vincom Retail JSC
Performance |
| Timeline |
| Vina2 Investment |
| Vincom Retail JSC |
Vina2 Investment and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Vincom Retail
The main advantage of trading using opposite Vina2 Investment and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail's long position.| Vina2 Investment vs. FIT INVEST JSC | Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. An Phat Plastic | Vina2 Investment vs. APG Securities Joint |
| Vincom Retail vs. Vina2 Investment and | Vincom Retail vs. Danang Education Investment | Vincom Retail vs. Vien Dong Investment | Vincom Retail vs. Construction And 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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