Correlation Between Vien Dong and Alphanam
Can any of the company-specific risk be diversified away by investing in both Vien Dong and Alphanam 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 Vien Dong and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vien Dong Investment and Alphanam ME, you can compare the effects of market volatilities on Vien Dong and Alphanam 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 Vien Dong with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vien Dong and Alphanam.
Diversification Opportunities for Vien Dong and Alphanam
Good diversification
The 3 months correlation between Vien and Alphanam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vien Dong Investment and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Vien Dong 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 Vien Dong Investment are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Vien Dong i.e., Vien Dong and Alphanam go up and down completely randomly.
Pair Corralation between Vien Dong and Alphanam
Assuming the 90 days trading horizon Vien Dong Investment is expected to generate 0.64 times more return on investment than Alphanam. However, Vien Dong Investment is 1.57 times less risky than Alphanam. It trades about 0.02 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.07 per unit of risk. If you would invest 467,329 in Vien Dong Investment on November 28, 2024 and sell it today you would earn a total of 55,671 from holding Vien Dong Investment or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.12% |
| Values | Daily Returns |
Vien Dong Investment vs. Alphanam ME
Performance |
| Timeline |
| Vien Dong Investment |
| Alphanam ME |
Vien Dong and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vien Dong and Alphanam
The main advantage of trading using opposite Vien Dong and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vien Dong position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Vien Dong vs. Sea Air Freight | Vien Dong vs. Ha Long Investment | Vien Dong vs. IDJ FINANCIAL | Vien Dong vs. TDT Investment and |
| Alphanam vs. Vietnam Petroleum Transport | Alphanam vs. Ipa Investments Group | Alphanam vs. MST Investment JSC | Alphanam vs. Binh Thuan Books |
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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