Correlation Between VinaCapital Vietnam and LEVERAGE SHARES
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and LEVERAGE SHARES 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 VinaCapital Vietnam and LEVERAGE SHARES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinaCapital Vietnam Opportunity and LEVERAGE SHARES PUBLIC, you can compare the effects of market volatilities on VinaCapital Vietnam and LEVERAGE SHARES 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 VinaCapital Vietnam with a short position of LEVERAGE SHARES. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and LEVERAGE SHARES.
Diversification Opportunities for VinaCapital Vietnam and LEVERAGE SHARES
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VinaCapital and LEVERAGE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and LEVERAGE SHARES PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEVERAGE SHARES PUBLIC and VinaCapital Vietnam 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 VinaCapital Vietnam Opportunity are associated (or correlated) with LEVERAGE SHARES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEVERAGE SHARES PUBLIC has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and LEVERAGE SHARES go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and LEVERAGE SHARES
Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to under-perform the LEVERAGE SHARES. But the etf apears to be less risky and, when comparing its historical volatility, VinaCapital Vietnam Opportunity is 2.22 times less risky than LEVERAGE SHARES. The etf trades about -0.22 of its potential returns per unit of risk. The LEVERAGE SHARES PUBLIC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 133,425 in LEVERAGE SHARES PUBLIC on September 5, 2024 and sell it today you would lose (6,600) from holding LEVERAGE SHARES PUBLIC or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. LEVERAGE SHARES PUBLIC
Performance |
| Timeline |
| VinaCapital Vietnam |
| LEVERAGE SHARES PUBLIC |
VinaCapital Vietnam and LEVERAGE SHARES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinaCapital Vietnam and LEVERAGE SHARES
The main advantage of trading using opposite VinaCapital Vietnam and LEVERAGE SHARES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam position performs unexpectedly, LEVERAGE SHARES 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 LEVERAGE SHARES will offset losses from the drop in LEVERAGE SHARES's long position.| VinaCapital Vietnam vs. Scottish Mortgage Investment | VinaCapital Vietnam vs. Baillie Gifford Growth | VinaCapital Vietnam vs. Blackrock Energy and | VinaCapital Vietnam vs. CT Private Equity |
| LEVERAGE SHARES vs. Scottish Mortgage Investment | LEVERAGE SHARES vs. VinaCapital Vietnam Opportunity | LEVERAGE SHARES vs. Edinburgh Worldwide Investment | LEVERAGE SHARES vs. Baillie Gifford Growth |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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