Correlation Between Actoz Soft and Vina Technology

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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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Actoz Soft CoLtd  vs.  Vina Technology Co

 Performance 
       Timeline  
Actoz Soft CoLtd 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Actoz Soft CoLtd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Actoz Soft sustained solid returns over the last few months and may actually be approaching a breakup point.
Vina Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vina Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.
The idea behind Actoz Soft CoLtd and Vina Technology Co 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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