Correlation Between Vincom Retail and Hung Hau
Can any of the company-specific risk be diversified away by investing in both Vincom Retail and Hung Hau 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 Hung Hau 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 Hung Hau Agricultural, you can compare the effects of market volatilities on Vincom Retail and Hung Hau 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 Hung Hau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vincom Retail and Hung Hau.
Diversification Opportunities for Vincom Retail and Hung Hau
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vincom and Hung is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vincom Retail JSC and Hung Hau Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hung Hau Agricultural 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 Hung Hau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hung Hau Agricultural has no effect on the direction of Vincom Retail i.e., Vincom Retail and Hung Hau go up and down completely randomly.
Pair Corralation between Vincom Retail and Hung Hau
Assuming the 90 days trading horizon Vincom Retail JSC is expected to under-perform the Hung Hau. But the stock apears to be less risky and, when comparing its historical volatility, Vincom Retail JSC is 1.88 times less risky than Hung Hau. The stock trades about -0.15 of its potential returns per unit of risk. The Hung Hau Agricultural is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 980,000 in Hung Hau Agricultural on September 2, 2024 and sell it today you would earn a total of 70,000 from holding Hung Hau Agricultural or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Vincom Retail JSC vs. Hung Hau Agricultural
Performance |
| Timeline |
| Vincom Retail JSC |
| Hung Hau Agricultural |
Vincom Retail and Hung Hau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vincom Retail and Hung Hau
The main advantage of trading using opposite Vincom Retail and Hung Hau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vincom Retail position performs unexpectedly, Hung Hau 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 Hung Hau will offset losses from the drop in Hung Hau's long position.| Vincom Retail vs. FIT INVEST JSC | Vincom Retail vs. Damsan JSC | Vincom Retail vs. An Phat Plastic | Vincom Retail vs. Alphanam ME |
| Hung Hau vs. Song Hong Garment | Hung Hau vs. Alphanam ME | Hung Hau vs. Hochiminh City Metal | Hung Hau vs. Atesco Industrial Cartering |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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