Correlation Between VTC Telecommunicatio and Hai An
Can any of the company-specific risk be diversified away by investing in both VTC Telecommunicatio and Hai An 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 Hai An 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 Hai An Transport, you can compare the effects of market volatilities on VTC Telecommunicatio and Hai An 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 Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTC Telecommunicatio and Hai An.
Diversification Opportunities for VTC Telecommunicatio and Hai An
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between VTC and Hai is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding VTC Telecommunications JSC and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport 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 Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of VTC Telecommunicatio i.e., VTC Telecommunicatio and Hai An go up and down completely randomly.
Pair Corralation between VTC Telecommunicatio and Hai An
Assuming the 90 days trading horizon VTC Telecommunications JSC is expected to generate 2.05 times more return on investment than Hai An. However, VTC Telecommunicatio is 2.05 times more volatile than Hai An Transport. It trades about 0.34 of its potential returns per unit of risk. Hai An Transport is currently generating about 0.05 per unit of risk. If you would invest 820,000 in VTC Telecommunications JSC on October 29, 2024 and sell it today you would earn a total of 130,000 from holding VTC Telecommunications JSC or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
VTC Telecommunications JSC vs. Hai An Transport
Performance |
| Timeline |
| VTC Telecommunications |
| Hai An Transport |
VTC Telecommunicatio and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VTC Telecommunicatio and Hai An
The main advantage of trading using opposite VTC Telecommunicatio and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTC Telecommunicatio position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| VTC Telecommunicatio vs. IDJ FINANCIAL | VTC Telecommunicatio vs. South Basic Chemicals | VTC Telecommunicatio vs. Petrolimex Insurance Corp | VTC Telecommunicatio vs. Hanoi Beer Alcohol |
| Hai An vs. Fecon Mining JSC | Hai An vs. Construction And Investment | Hai An vs. Japan Vietnam Medical | Hai An vs. Vien Dong Investment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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