Correlation Between Actoz Soft and Vina Technology
Can any of the company-specific risk be diversified away by investing in both Actoz Soft and Vina Technology 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 Actoz Soft and Vina Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actoz Soft CoLtd and Vina Technology Co, you can compare the effects of market volatilities on Actoz Soft and Vina Technology 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 Actoz Soft with a short position of Vina Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actoz Soft and Vina Technology.
Diversification Opportunities for Actoz Soft and Vina Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actoz and Vina is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Actoz Soft CoLtd and Vina Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Technology and Actoz Soft 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 Actoz Soft CoLtd are associated (or correlated) with Vina Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Technology has no effect on the direction of Actoz Soft i.e., Actoz Soft and Vina Technology go up and down completely randomly.
Pair Corralation between Actoz Soft and Vina Technology
Assuming the 90 days trading horizon Actoz Soft is expected to generate 1.07 times less return on investment than Vina Technology. But when comparing it to its historical volatility, Actoz Soft CoLtd is 1.72 times less risky than Vina Technology. It trades about 0.43 of its potential returns per unit of risk. Vina Technology Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,219,048 in Vina Technology Co on October 10, 2024 and sell it today you would earn a total of 655,952 from holding Vina Technology Co or generate 29.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Actoz Soft CoLtd vs. Vina Technology Co
Performance |
Timeline |
Actoz Soft CoLtd |
Vina Technology |
Actoz Soft and Vina Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Actoz Soft and Vina Technology
The main advantage of trading using opposite Actoz Soft and Vina Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actoz Soft position performs unexpectedly, Vina Technology 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 Vina Technology will offset losses from the drop in Vina Technology's long position.Actoz Soft vs. Xavis Co | Actoz Soft vs. Hurum Co | Actoz Soft vs. Daishin Balance No8 | Actoz Soft vs. Korea Real Estate |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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