Correlation Between Vnsteel Vicasa and Elcom Technology
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and Elcom Technology 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 Elcom Technology 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 Elcom Technology Communications, you can compare the effects of market volatilities on Vnsteel Vicasa and Elcom Technology 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 Elcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and Elcom Technology.
Diversification Opportunities for Vnsteel Vicasa and Elcom Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vnsteel and Elcom is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and Elcom Technology Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elcom Technology Com 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 Elcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elcom Technology Com has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and Elcom Technology go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and Elcom Technology
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the Elcom Technology. In addition to that, Vnsteel Vicasa is 3.96 times more volatile than Elcom Technology Communications. It trades about -0.11 of its total potential returns per unit of risk. Elcom Technology Communications is currently generating about 0.04 per unit of volatility. If you would invest 2,660,000 in Elcom Technology Communications on October 7, 2024 and sell it today you would earn a total of 25,000 from holding Elcom Technology Communications or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. Elcom Technology Communication
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| Elcom Technology Com |
Vnsteel Vicasa and Elcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and Elcom Technology
The main advantage of trading using opposite Vnsteel Vicasa and Elcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, Elcom Technology 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 Elcom Technology will offset losses from the drop in Elcom Technology'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 |
| Elcom Technology vs. Duong Hieu Trading | Elcom Technology vs. Din Capital Investment | Elcom Technology vs. VietinBank Securities JSC | Elcom Technology vs. BIDV Insurance Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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