Correlation Between Vinhomes JSC and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Vinhomes JSC and Fecon Mining 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 Vinhomes JSC and Fecon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinhomes JSC and Fecon Mining JSC, you can compare the effects of market volatilities on Vinhomes JSC and Fecon Mining 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 Vinhomes JSC with a short position of Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinhomes JSC and Fecon Mining.
Diversification Opportunities for Vinhomes JSC and Fecon Mining
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vinhomes and Fecon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining JSC and Vinhomes JSC 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 Vinhomes JSC are associated (or correlated) with Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Vinhomes JSC i.e., Vinhomes JSC and Fecon Mining go up and down completely randomly.
Pair Corralation between Vinhomes JSC and Fecon Mining
Assuming the 90 days trading horizon Vinhomes JSC is expected to under-perform the Fecon Mining. But the stock apears to be less risky and, when comparing its historical volatility, Vinhomes JSC is 1.02 times less risky than Fecon Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Fecon Mining JSC is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 360,000 in Fecon Mining JSC on September 2, 2024 and sell it today you would lose (54,000) from holding Fecon Mining JSC or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinhomes JSC vs. Fecon Mining JSC
Performance |
| Timeline |
| Vinhomes JSC |
| Fecon Mining JSC |
Vinhomes JSC and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinhomes JSC and Fecon Mining
The main advantage of trading using opposite Vinhomes JSC and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinhomes JSC position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| Vinhomes JSC vs. FIT INVEST JSC | Vinhomes JSC vs. Damsan JSC | Vinhomes JSC vs. An Phat Plastic | Vinhomes JSC vs. Alphanam ME |
| Fecon Mining vs. Ha Long Investment | Fecon Mining vs. Everland Investment JSC | Fecon Mining vs. Hochiminh City Metal | Fecon Mining 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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