Correlation Between Saigon Telecommunicatio and Vinhomes JSC
Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Vinhomes JSC 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 Vinhomes JSC 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 Vinhomes JSC, you can compare the effects of market volatilities on Saigon Telecommunicatio and Vinhomes JSC 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 Vinhomes JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Vinhomes JSC.
Diversification Opportunities for Saigon Telecommunicatio and Vinhomes JSC
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Vinhomes is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Vinhomes JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinhomes JSC 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 Vinhomes JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinhomes JSC has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Vinhomes JSC go up and down completely randomly.
Pair Corralation between Saigon Telecommunicatio and Vinhomes JSC
Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 1.64 times more return on investment than Vinhomes JSC. However, Saigon Telecommunicatio is 1.64 times more volatile than Vinhomes JSC. It trades about 0.31 of its potential returns per unit of risk. Vinhomes JSC is currently generating about -0.22 per unit of risk. If you would invest 1,470,000 in Saigon Telecommunication Technologies on September 26, 2024 and sell it today you would earn a total of 195,000 from holding Saigon Telecommunication Technologies or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Saigon Telecommunication Techn vs. Vinhomes JSC
Performance |
Timeline |
Saigon Telecommunicatio |
Vinhomes JSC |
Saigon Telecommunicatio and Vinhomes JSC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saigon Telecommunicatio and Vinhomes JSC
The main advantage of trading using opposite Saigon Telecommunicatio and Vinhomes JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Vinhomes JSC 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 Vinhomes JSC will offset losses from the drop in Vinhomes JSC's long position.Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio vs. Alphanam ME |
Vinhomes JSC vs. FIT INVEST JSC | Vinhomes JSC vs. Damsan JSC | Vinhomes JSC vs. An Phat Plastic | Vinhomes JSC vs. Alphanam ME |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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