Correlation Between VinaCapital Vietnam and Global X
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and Global X 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 Global X 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 Global X ETFs, you can compare the effects of market volatilities on VinaCapital Vietnam and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and Global X.
Diversification Opportunities for VinaCapital Vietnam and Global X
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VinaCapital and Global is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and Global X ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X ETFs 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X ETFs has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and Global X go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and Global X
Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to under-perform the Global X. In addition to that, VinaCapital Vietnam is 1.98 times more volatile than Global X ETFs. It trades about -0.09 of its total potential returns per unit of risk. Global X ETFs is currently generating about 0.2 per unit of volatility. If you would invest 1,885 in Global X ETFs on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Global X ETFs or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. Global X ETFs
Performance |
| Timeline |
| VinaCapital Vietnam |
| Global X ETFs |
VinaCapital Vietnam and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinaCapital Vietnam and Global X
The main advantage of trading using opposite VinaCapital Vietnam and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| VinaCapital Vietnam vs. CT Private Equity | VinaCapital Vietnam vs. BlackRock Latin American | VinaCapital Vietnam vs. Edinburgh Worldwide Investment | VinaCapital Vietnam vs. Aberdeen New India |
| Global X vs. Scottish Mortgage Investment | Global X vs. VinaCapital Vietnam Opportunity | Global X vs. Edinburgh Worldwide Investment | Global X 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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