Correlation Between Vinhomes JSC and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Vinhomes JSC and Hanoi Beer 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 Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinhomes JSC and Hanoi Beer Trading, you can compare the effects of market volatilities on Vinhomes JSC and Hanoi Beer 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 Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinhomes JSC and Hanoi Beer.
Diversification Opportunities for Vinhomes JSC and Hanoi Beer
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vinhomes and Hanoi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC and Hanoi Beer Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Trading 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 Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Trading has no effect on the direction of Vinhomes JSC i.e., Vinhomes JSC and Hanoi Beer go up and down completely randomly.
Pair Corralation between Vinhomes JSC and Hanoi Beer
Assuming the 90 days trading horizon Vinhomes JSC is expected to under-perform the Hanoi Beer. But the stock apears to be less risky and, when comparing its historical volatility, Vinhomes JSC is 2.2 times less risky than Hanoi Beer. The stock trades about -0.01 of its potential returns per unit of risk. The Hanoi Beer Trading is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,804,091 in Hanoi Beer Trading on September 14, 2024 and sell it today you would earn a total of 2,445,909 from holding Hanoi Beer Trading or generate 135.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.14% |
| Values | Daily Returns |
Vinhomes JSC vs. Hanoi Beer Trading
Performance |
| Timeline |
| Vinhomes JSC |
| Hanoi Beer Trading |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vinhomes JSC and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinhomes JSC and Hanoi Beer
The main advantage of trading using opposite Vinhomes JSC and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinhomes JSC position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer'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 |
| Hanoi Beer vs. Hochiminh City Metal | Hanoi Beer vs. Nafoods Group JSC | Hanoi Beer vs. Fecon Mining JSC | Hanoi Beer vs. Post and Telecommunications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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