Correlation Between Vinhomes JSC and Masan Group
Can any of the company-specific risk be diversified away by investing in both Vinhomes JSC and Masan Group 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 Masan Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinhomes JSC and Masan Group Corp, you can compare the effects of market volatilities on Vinhomes JSC and Masan Group 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 Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinhomes JSC and Masan Group.
Diversification Opportunities for Vinhomes JSC and Masan Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vinhomes and Masan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp 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 Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of Vinhomes JSC i.e., Vinhomes JSC and Masan Group go up and down completely randomly.
Pair Corralation between Vinhomes JSC and Masan Group
Assuming the 90 days trading horizon Vinhomes JSC is expected to generate 2.07 times less return on investment than Masan Group. But when comparing it to its historical volatility, Vinhomes JSC is 1.01 times less risky than Masan Group. It trades about 0.01 of its potential returns per unit of risk. Masan Group Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,620,000 in Masan Group Corp on September 3, 2024 and sell it today you would earn a total of 640,000 from holding Masan Group Corp or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinhomes JSC vs. Masan Group Corp
Performance |
| Timeline |
| Vinhomes JSC |
| Masan Group Corp |
Vinhomes JSC and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinhomes JSC and Masan Group
The main advantage of trading using opposite Vinhomes JSC and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinhomes JSC position performs unexpectedly, Masan Group 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 Masan Group will offset losses from the drop in Masan Group's long position.| Vinhomes JSC vs. Innovative Technology Development | Vinhomes JSC vs. Tien Giang Investment | Vinhomes JSC vs. Hai An Transport | Vinhomes JSC vs. Ha Long Investment |
| Masan Group vs. CEO Group JSC | Masan Group vs. PetroVietnam Transportation Corp | Masan Group vs. Hanoi Beer Alcohol | Masan Group vs. Elcom Technology Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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