Correlation Between Vietnam Ocean and Vietnam Airlines
Can any of the company-specific risk be diversified away by investing in both Vietnam Ocean and Vietnam Airlines 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 Vietnam Ocean and Vietnam Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Ocean Shipping and Vietnam Airlines JSC, you can compare the effects of market volatilities on Vietnam Ocean and Vietnam Airlines 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 Vietnam Ocean with a short position of Vietnam Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Ocean and Vietnam Airlines.
Diversification Opportunities for Vietnam Ocean and Vietnam Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vietnam and Vietnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Ocean Shipping and Vietnam Airlines JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Airlines JSC and Vietnam Ocean 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 Vietnam Ocean Shipping are associated (or correlated) with Vietnam Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Airlines JSC has no effect on the direction of Vietnam Ocean i.e., Vietnam Ocean and Vietnam Airlines go up and down completely randomly.
Pair Corralation between Vietnam Ocean and Vietnam Airlines
If you would invest 1,290,000 in Vietnam Airlines JSC on September 12, 2024 and sell it today you would earn a total of 1,480,000 from holding Vietnam Airlines JSC or generate 114.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Vietnam Ocean Shipping vs. Vietnam Airlines JSC
Performance |
| Timeline |
| Vietnam Ocean Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vietnam Airlines JSC |
Vietnam Ocean and Vietnam Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Ocean and Vietnam Airlines
The main advantage of trading using opposite Vietnam Ocean and Vietnam Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Ocean position performs unexpectedly, Vietnam Airlines 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 Vietnam Airlines will offset losses from the drop in Vietnam Airlines' long position.| Vietnam Ocean vs. Vietnam Dairy Products | Vietnam Ocean vs. FPT Digital Retail | Vietnam Ocean vs. Transport and Industry | Vietnam Ocean vs. PetroVietnam Drilling Well |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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