Correlation Between Vnsteel Vicasa and COMA 18
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and COMA 18 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 Vnsteel Vicasa and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vnsteel Vicasa JSC and COMA 18 JSC, you can compare the effects of market volatilities on Vnsteel Vicasa and COMA 18 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 Vnsteel Vicasa with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and COMA 18.
Diversification Opportunities for Vnsteel Vicasa and COMA 18
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vnsteel and COMA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Vnsteel Vicasa 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 Vnsteel Vicasa JSC are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and COMA 18 go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and COMA 18
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the COMA 18. But the stock apears to be less risky and, when comparing its historical volatility, Vnsteel Vicasa JSC is 1.11 times less risky than COMA 18. The stock trades about -0.13 of its potential returns per unit of risk. The COMA 18 JSC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 810,000 in COMA 18 JSC on October 25, 2024 and sell it today you would earn a total of 25,000 from holding COMA 18 JSC or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. COMA 18 JSC
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| COMA 18 JSC |
Vnsteel Vicasa and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and COMA 18
The main advantage of trading using opposite Vnsteel Vicasa and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Vnsteel Vicasa vs. FIT INVEST JSC | Vnsteel Vicasa vs. Damsan JSC | Vnsteel Vicasa vs. An Phat Plastic | Vnsteel Vicasa vs. APG Securities Joint |
| COMA 18 vs. Petrolimex Information Technology | COMA 18 vs. Vnsteel Vicasa JSC | COMA 18 vs. Vietnam Technological And | COMA 18 vs. IDJ FINANCIAL |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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