Correlation Between Viet Thanh and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Viet Thanh and Vincom Retail 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 Viet Thanh and Vincom Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viet Thanh Plastic and Vincom Retail JSC, you can compare the effects of market volatilities on Viet Thanh and Vincom Retail 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 Viet Thanh with a short position of Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viet Thanh and Vincom Retail.
Diversification Opportunities for Viet Thanh and Vincom Retail
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viet and Vincom is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Viet Thanh Plastic and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail JSC and Viet Thanh 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 Viet Thanh Plastic are associated (or correlated) with Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Viet Thanh i.e., Viet Thanh and Vincom Retail go up and down completely randomly.
Pair Corralation between Viet Thanh and Vincom Retail
Assuming the 90 days trading horizon Viet Thanh Plastic is expected to generate 1.74 times more return on investment than Vincom Retail. However, Viet Thanh is 1.74 times more volatile than Vincom Retail JSC. It trades about 0.12 of its potential returns per unit of risk. Vincom Retail JSC is currently generating about -0.1 per unit of risk. If you would invest 1,500,000 in Viet Thanh Plastic on September 14, 2024 and sell it today you would earn a total of 240,000 from holding Viet Thanh Plastic or generate 16.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Viet Thanh Plastic vs. Vincom Retail JSC
Performance |
Timeline |
Viet Thanh Plastic |
Vincom Retail JSC |
Viet Thanh and Vincom Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Viet Thanh and Vincom Retail
The main advantage of trading using opposite Viet Thanh and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viet Thanh position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail's long position.Viet Thanh vs. Ben Thanh Rubber | Viet Thanh vs. Transport and Industry | Viet Thanh vs. Saigon Telecommunication Technologies | Viet Thanh vs. Dong Nai Plastic |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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