Correlation Between VietinBank Securities and Dow Jones

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities and Dow Jones 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 VietinBank Securities and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VietinBank Securities JSC and Dow Jones Industrial, you can compare the effects of market volatilities on VietinBank Securities and Dow Jones 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 VietinBank Securities with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and Dow Jones.

Diversification Opportunities for VietinBank Securities and Dow Jones

VietinBankDowDiversified AwayVietinBankDowDiversified Away100%
-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between VietinBank and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and VietinBank Securities 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 VietinBank Securities JSC are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and Dow Jones go up and down completely randomly.
    Optimize

Pair Corralation between VietinBank Securities and Dow Jones

Assuming the 90 days trading horizon VietinBank Securities JSC is expected to under-perform the Dow Jones. In addition to that, VietinBank Securities is 2.37 times more volatile than Dow Jones Industrial. It trades about -0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.11 per unit of volatility. If you would invest  4,162,208  in Dow Jones Industrial on September 16, 2024 and sell it today you would earn a total of  220,598  from holding Dow Jones Industrial or generate 5.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.48%
ValuesDaily Returns

VietinBank Securities JSC  vs.  Dow Jones Industrial

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -10-50510
JavaScript chart by amCharts 3.21.15CTS DJI
       Timeline  

VietinBank Securities and Dow Jones Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.81-2.1-1.4-0.690.00.671.352.022.69 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.15CTS DJI
       Returns  

Pair Trading with VietinBank Securities and Dow Jones

The main advantage of trading using opposite VietinBank Securities and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.
The idea behind VietinBank Securities JSC and Dow Jones Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Commodity Directory
Find actively traded commodities issued by global exchanges
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine