Correlation Between HNX 30 and Trung An

Can any of the company-specific risk be diversified away by investing in both HNX 30 and Trung 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 HNX 30 and Trung An into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HNX 30 and Trung An Hi Tech, you can compare the effects of market volatilities on HNX 30 and Trung 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 HNX 30 with a short position of Trung An. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Trung An.

Diversification Opportunities for HNX 30 and Trung An

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Correlation Coefficient

HNX 30  Trung An

Pay attention - limited upside

The 3 months correlation between HNX and Trung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Trung An Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trung An Hi and HNX 30 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 HNX 30 are associated (or correlated) with Trung An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trung An Hi has no effect on the direction of HNX 30 i.e., HNX 30 and Trung An go up and down completely randomly.

Pair Corralation between HNX 30 and Trung An

If you would invest  34,681  in HNX 30 on September 30, 2024 and sell it today you would earn a total of  13,729  from holding HNX 30 or generate 39.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HNX 30  vs.  Trung An Hi Tech

Pair Trading with HNX 30 and Trung An

The main advantage of trading using opposite HNX 30 and Trung An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Trung 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 Trung An will offset losses from the drop in Trung An's long position.

The idea behind HNX 30 and Trung An Hi Tech 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.