Correlation Between Visicons Construction and Saigon Machinery
Can any of the company-specific risk be diversified away by investing in both Visicons Construction and Saigon Machinery 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 Visicons Construction and Saigon Machinery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visicons Construction and and Saigon Machinery Spare, you can compare the effects of market volatilities on Visicons Construction and Saigon Machinery 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 Visicons Construction with a short position of Saigon Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visicons Construction and Saigon Machinery.
Diversification Opportunities for Visicons Construction and Saigon Machinery
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Visicons and Saigon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Visicons Construction and and Saigon Machinery Spare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Machinery Spare and Visicons Construction 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 Visicons Construction and are associated (or correlated) with Saigon Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Machinery Spare has no effect on the direction of Visicons Construction i.e., Visicons Construction and Saigon Machinery go up and down completely randomly.
Pair Corralation between Visicons Construction and Saigon Machinery
Assuming the 90 days trading horizon Visicons Construction is expected to generate 1.55 times less return on investment than Saigon Machinery. In addition to that, Visicons Construction is 1.38 times more volatile than Saigon Machinery Spare. It trades about 0.08 of its total potential returns per unit of risk. Saigon Machinery Spare is currently generating about 0.17 per unit of volatility. If you would invest 842,482 in Saigon Machinery Spare on October 29, 2024 and sell it today you would earn a total of 757,518 from holding Saigon Machinery Spare or generate 89.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.38% |
| Values | Daily Returns |
Visicons Construction and vs. Saigon Machinery Spare
Performance |
| Timeline |
| Visicons Construction and |
| Saigon Machinery Spare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
Visicons Construction and Saigon Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visicons Construction and Saigon Machinery
The main advantage of trading using opposite Visicons Construction and Saigon Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visicons Construction position performs unexpectedly, Saigon Machinery 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 Saigon Machinery will offset losses from the drop in Saigon Machinery's long position.| Visicons Construction vs. Vietnam Airlines JSC | Visicons Construction vs. MST Investment JSC | Visicons Construction vs. TDT Investment and | Visicons Construction vs. Hoang Huy Investment |
| Saigon Machinery vs. Pacific Petroleum Transportation | Saigon Machinery vs. Transimex Transportation JSC | Saigon Machinery vs. Petrolimex Information Technology | Saigon Machinery vs. DOMESCO Medical Import |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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