Correlation Between VinaCapital Vietnam and Edinburgh Worldwide
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and Edinburgh Worldwide 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 Edinburgh Worldwide 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 Edinburgh Worldwide Investment, you can compare the effects of market volatilities on VinaCapital Vietnam and Edinburgh Worldwide 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 Edinburgh Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and Edinburgh Worldwide.
Diversification Opportunities for VinaCapital Vietnam and Edinburgh Worldwide
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinaCapital and Edinburgh is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and Edinburgh Worldwide Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edinburgh Worldwide 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 Edinburgh Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edinburgh Worldwide has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and Edinburgh Worldwide go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and Edinburgh Worldwide
Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to under-perform the Edinburgh Worldwide. But the etf apears to be less risky and, when comparing its historical volatility, VinaCapital Vietnam Opportunity is 1.68 times less risky than Edinburgh Worldwide. The etf trades about -0.18 of its potential returns per unit of risk. The Edinburgh Worldwide Investment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 15,540 in Edinburgh Worldwide Investment on August 24, 2024 and sell it today you would earn a total of 1,600 from holding Edinburgh Worldwide Investment or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. Edinburgh Worldwide Investment
Performance |
| Timeline |
| VinaCapital Vietnam |
| Edinburgh Worldwide |
VinaCapital Vietnam and Edinburgh Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinaCapital Vietnam and Edinburgh Worldwide
The main advantage of trading using opposite VinaCapital Vietnam and Edinburgh Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam position performs unexpectedly, Edinburgh Worldwide 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 Edinburgh Worldwide will offset losses from the drop in Edinburgh Worldwide's long position.| VinaCapital Vietnam vs. Aberdeen New India | VinaCapital Vietnam vs. Blackrock Energy and | VinaCapital Vietnam vs. Scottish Mortgage Investment | VinaCapital Vietnam vs. CT Private Equity |
| Edinburgh Worldwide vs. Aberdeen New India | Edinburgh Worldwide vs. Blackrock Energy and | Edinburgh Worldwide vs. Scottish Mortgage Investment | Edinburgh Worldwide vs. VinaCapital Vietnam Opportunity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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