Correlation Between Vincom Retail and Investment
Can any of the company-specific risk be diversified away by investing in both Vincom Retail and Investment 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 Vincom Retail and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vincom Retail JSC and Investment And Construction, you can compare the effects of market volatilities on Vincom Retail and Investment 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 Vincom Retail with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vincom Retail and Investment.
Diversification Opportunities for Vincom Retail and Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vincom and Investment is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Vincom Retail JSC and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const and Vincom Retail 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 Vincom Retail JSC are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Vincom Retail i.e., Vincom Retail and Investment go up and down completely randomly.
Pair Corralation between Vincom Retail and Investment
Assuming the 90 days trading horizon Vincom Retail JSC is expected to under-perform the Investment. But the stock apears to be less risky and, when comparing its historical volatility, Vincom Retail JSC is 2.81 times less risky than Investment. The stock trades about -0.06 of its potential returns per unit of risk. The Investment And Construction is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 390,000 in Investment And Construction on October 17, 2024 and sell it today you would earn a total of 560,000 from holding Investment And Construction or generate 143.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.95% |
| Values | Daily Returns |
Vincom Retail JSC vs. Investment And Construction
Performance |
| Timeline |
| Vincom Retail JSC |
| Investment And Const |
Vincom Retail and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vincom Retail and Investment
The main advantage of trading using opposite Vincom Retail and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vincom Retail position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Vincom Retail vs. TDT Investment and | Vincom Retail vs. Thanh Dat Investment | Vincom Retail vs. South Basic Chemicals | Vincom Retail vs. Bao Ngoc Investment |
| Investment vs. Elcom Technology Communications | Investment vs. VietinBank Securities JSC | Investment vs. Military Insurance Corp | Investment vs. Vietnam Technological And |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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