Correlation Between Saigon Telecommunicatio and VINACONEX

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

By analyzing existing cross correlation between Saigon Telecommunication Technologies and VINACONEX 21, you can compare the effects of market volatilities on Saigon Telecommunicatio and VINACONEX 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 Saigon Telecommunicatio with a short position of VINACONEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and VINACONEX.

Diversification Opportunities for Saigon Telecommunicatio and VINACONEX

0.0

Correlation Coefficient

Saigon Telecommunicatio  VINACONEX

Pay attention - limited upside

The 3 months correlation between Saigon and VINACONEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and VINACONEX 21 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINACONEX 21 and Saigon 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 Saigon Telecommunication Technologies are associated (or correlated) with VINACONEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINACONEX 21 has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and VINACONEX go up and down completely randomly.

Pair Corralation between Saigon Telecommunicatio and VINACONEX

If you would invest  1,500,000  in Saigon Telecommunication Technologies on October 1, 2024 and sell it today you would earn a total of  230,000  from holding Saigon Telecommunication Technologies or generate 15.33% return on investment over 90 days.

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

Saigon Telecommunication Techn  vs.  VINACONEX 21

Saigon Telecommunicatio

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saigon Telecommunication Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Saigon Telecommunicatio displayed solid returns over the last few months and may actually be approaching a breakup point.

VINACONEX 21

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VINACONEX 21 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, VINACONEX displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Saigon Telecommunicatio and VINACONEX

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

The idea behind Saigon Telecommunication Technologies and VINACONEX 21 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.