Correlation Between Vnsteel Vicasa and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on Vnsteel Vicasa and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and POST TELECOMMU.
Diversification Opportunities for Vnsteel Vicasa and POST TELECOMMU
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vnsteel and POST is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and POST TELECOMMU
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to generate 0.82 times more return on investment than POST TELECOMMU. However, Vnsteel Vicasa JSC is 1.22 times less risky than POST TELECOMMU. It trades about 0.14 of its potential returns per unit of risk. POST TELECOMMU is currently generating about -0.02 per unit of risk. If you would invest 860,000 in Vnsteel Vicasa JSC on September 14, 2024 and sell it today you would earn a total of 900,000 from holding Vnsteel Vicasa JSC or generate 104.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.58% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. POST TELECOMMU
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| POST TELECOMMU |
Vnsteel Vicasa and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and POST TELECOMMU
The main advantage of trading using opposite Vnsteel Vicasa and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| Vnsteel Vicasa vs. Transimex Transportation JSC | Vnsteel Vicasa vs. Tng Investment And | Vnsteel Vicasa vs. BaoMinh Insurance Corp | Vnsteel Vicasa vs. Nafoods Group JSC |
| POST TELECOMMU vs. South Basic Chemicals | POST TELECOMMU vs. LDG Investment JSC | POST TELECOMMU vs. Hanoi Beer Alcohol | POST TELECOMMU vs. Vu Dang 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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