Correlation Between Vietnam JSCmmercial and CEO Group
Can any of the company-specific risk be diversified away by investing in both Vietnam JSCmmercial and CEO Group 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 JSCmmercial and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam JSCmmercial Bank and CEO Group JSC, you can compare the effects of market volatilities on Vietnam JSCmmercial and CEO Group 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 JSCmmercial with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam JSCmmercial and CEO Group.
Diversification Opportunities for Vietnam JSCmmercial and CEO Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vietnam and CEO is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam JSCmmercial Bank and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and Vietnam JSCmmercial 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 JSCmmercial Bank are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Vietnam JSCmmercial i.e., Vietnam JSCmmercial and CEO Group go up and down completely randomly.
Pair Corralation between Vietnam JSCmmercial and CEO Group
Assuming the 90 days trading horizon Vietnam JSCmmercial Bank is expected to generate 0.68 times more return on investment than CEO Group. However, Vietnam JSCmmercial Bank is 1.48 times less risky than CEO Group. It trades about 0.07 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.05 per unit of risk. If you would invest 3,465,000 in Vietnam JSCmmercial Bank on September 15, 2024 and sell it today you would earn a total of 170,000 from holding Vietnam JSCmmercial Bank or generate 4.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vietnam JSCmmercial Bank vs. CEO Group JSC
Performance |
Timeline |
Vietnam JSCmmercial Bank |
CEO Group JSC |
Vietnam JSCmmercial and CEO Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vietnam JSCmmercial and CEO Group
The main advantage of trading using opposite Vietnam JSCmmercial and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam JSCmmercial position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.Vietnam JSCmmercial vs. FIT INVEST JSC | Vietnam JSCmmercial vs. Damsan JSC | Vietnam JSCmmercial vs. An Phat Plastic | Vietnam JSCmmercial vs. Alphanam ME |
CEO Group vs. Vietnam JSCmmercial Bank | CEO Group vs. Mechanics Construction and | CEO Group vs. Construction JSC No5 | CEO Group vs. Development Investment Construction |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |