Correlation Between Vietnam Enterprise and Xeros Technology
Can any of the company-specific risk be diversified away by investing in both Vietnam Enterprise and Xeros 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 Vietnam Enterprise and Xeros Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Enterprise Investments and Xeros Technology Group, you can compare the effects of market volatilities on Vietnam Enterprise and Xeros 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 Vietnam Enterprise with a short position of Xeros Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Enterprise and Xeros Technology.
Diversification Opportunities for Vietnam Enterprise and Xeros Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vietnam and Xeros is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Enterprise Investments and Xeros Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xeros Technology and Vietnam Enterprise 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 Vietnam Enterprise Investments are associated (or correlated) with Xeros Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xeros Technology has no effect on the direction of Vietnam Enterprise i.e., Vietnam Enterprise and Xeros Technology go up and down completely randomly.
Pair Corralation between Vietnam Enterprise and Xeros Technology
Assuming the 90 days trading horizon Vietnam Enterprise Investments is expected to generate 0.38 times more return on investment than Xeros Technology. However, Vietnam Enterprise Investments is 2.65 times less risky than Xeros Technology. It trades about 0.01 of its potential returns per unit of risk. Xeros Technology Group is currently generating about -0.08 per unit of risk. If you would invest 58,700 in Vietnam Enterprise Investments on November 7, 2024 and sell it today you would earn a total of 600.00 from holding Vietnam Enterprise Investments or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Vietnam Enterprise Investments vs. Xeros Technology Group
Performance |
| Timeline |
| Vietnam Enterprise |
| Xeros Technology |
Vietnam Enterprise and Xeros Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Enterprise and Xeros Technology
The main advantage of trading using opposite Vietnam Enterprise and Xeros Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Enterprise position performs unexpectedly, Xeros 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 Xeros Technology will offset losses from the drop in Xeros Technology's long position.| Vietnam Enterprise vs. Quadrise Plc | Vietnam Enterprise vs. ImmuPharma PLC | Vietnam Enterprise vs. Intuitive Investments Group | Vietnam Enterprise vs. European Metals Holdings |
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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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