Correlation Between Vnsteel Vicasa and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Vnsteel Vicasa and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and Thanh Dat.
Diversification Opportunities for Vnsteel Vicasa and Thanh Dat
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vnsteel and Thanh is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and Thanh Dat go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and Thanh Dat
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the Thanh Dat. In addition to that, Vnsteel Vicasa is 1.47 times more volatile than Thanh Dat Investment. It trades about -0.21 of its total potential returns per unit of risk. Thanh Dat Investment is currently generating about -0.25 per unit of volatility. If you would invest 2,720,000 in Thanh Dat Investment on October 22, 2024 and sell it today you would lose (280,000) from holding Thanh Dat Investment or give up 10.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. Thanh Dat Investment
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| Thanh Dat Investment |
Vnsteel Vicasa and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and Thanh Dat
The main advantage of trading using opposite Vnsteel Vicasa and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Vnsteel Vicasa vs. Post and Telecommunications | Vnsteel Vicasa vs. Elcom Technology Communications | Vnsteel Vicasa vs. Investment and Industrial | Vnsteel Vicasa vs. FPT Digital Retail |
| Thanh Dat vs. Hanoi Beer Alcohol | Thanh Dat vs. SMC Investment Trading | Thanh Dat vs. BaoMinh Insurance Corp | Thanh Dat vs. Sea Air Freight |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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