Correlation Between VTC Telecommunicatio and Vu Dang
Can any of the company-specific risk be diversified away by investing in both VTC Telecommunicatio and Vu Dang 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 Vu Dang 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 Vu Dang Investment, you can compare the effects of market volatilities on VTC Telecommunicatio and Vu Dang 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 Vu Dang. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTC Telecommunicatio and Vu Dang.
Diversification Opportunities for VTC Telecommunicatio and Vu Dang
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between VTC and SVD is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding VTC Telecommunications JSC and Vu Dang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vu Dang Investment 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 Vu Dang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vu Dang Investment has no effect on the direction of VTC Telecommunicatio i.e., VTC Telecommunicatio and Vu Dang go up and down completely randomly.
Pair Corralation between VTC Telecommunicatio and Vu Dang
Assuming the 90 days trading horizon VTC Telecommunications JSC is expected to generate 1.72 times more return on investment than Vu Dang. However, VTC Telecommunicatio is 1.72 times more volatile than Vu Dang Investment. It trades about 0.02 of its potential returns per unit of risk. Vu Dang Investment is currently generating about 0.01 per unit of risk. If you would invest 894,757 in VTC Telecommunications JSC on September 4, 2024 and sell it today you would lose (44,757) from holding VTC Telecommunications JSC or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.24% |
| Values | Daily Returns |
VTC Telecommunications JSC vs. Vu Dang Investment
Performance |
| Timeline |
| VTC Telecommunications |
| Vu Dang Investment |
VTC Telecommunicatio and Vu Dang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VTC Telecommunicatio and Vu Dang
The main advantage of trading using opposite VTC Telecommunicatio and Vu Dang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTC Telecommunicatio position performs unexpectedly, Vu Dang 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 Vu Dang will offset losses from the drop in Vu Dang's long position.| VTC Telecommunicatio vs. Alphanam ME | VTC Telecommunicatio vs. Hochiminh City Metal | VTC Telecommunicatio vs. Atesco Industrial Cartering | VTC Telecommunicatio vs. Danang Education Investment |
| Vu Dang vs. Fecon Mining JSC | Vu Dang vs. An Phat Plastic | Vu Dang vs. Nafoods Group JSC | Vu Dang vs. Southern Rubber Industry |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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