Correlation Between VTC Telecommunicatio and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both VTC Telecommunicatio and Ben Thanh 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 VTC Telecommunicatio and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VTC Telecommunications JSC and Ben Thanh Rubber, you can compare the effects of market volatilities on VTC Telecommunicatio and Ben Thanh 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 VTC Telecommunicatio with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTC Telecommunicatio and Ben Thanh.
Diversification Opportunities for VTC Telecommunicatio and Ben Thanh
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VTC and Ben is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding VTC Telecommunications JSC and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and VTC Telecommunicatio 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 VTC Telecommunications JSC are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of VTC Telecommunicatio i.e., VTC Telecommunicatio and Ben Thanh go up and down completely randomly.
Pair Corralation between VTC Telecommunicatio and Ben Thanh
Assuming the 90 days trading horizon VTC Telecommunicatio is expected to generate 1.98 times less return on investment than Ben Thanh. In addition to that, VTC Telecommunicatio is 2.42 times more volatile than Ben Thanh Rubber. It trades about 0.01 of its total potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.07 per unit of volatility. If you would invest 780,767 in Ben Thanh Rubber on September 16, 2024 and sell it today you would earn a total of 614,233 from holding Ben Thanh Rubber or generate 78.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.84% |
| Values | Daily Returns |
VTC Telecommunications JSC vs. Ben Thanh Rubber
Performance |
| Timeline |
| VTC Telecommunications |
| Ben Thanh Rubber |
VTC Telecommunicatio and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VTC Telecommunicatio and Ben Thanh
The main advantage of trading using opposite VTC Telecommunicatio and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTC Telecommunicatio position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| VTC Telecommunicatio vs. Song Hong Garment | VTC Telecommunicatio vs. Alphanam ME | VTC Telecommunicatio vs. Hochiminh City Metal | VTC Telecommunicatio vs. Atesco Industrial Cartering |
| Ben Thanh vs. Transport and Industry | Ben Thanh vs. South Basic Chemicals | Ben Thanh vs. An Phat Plastic | Ben Thanh vs. VTC Telecommunications JSC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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