Correlation Between Mekong Fisheries and EVN Finance

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

By analyzing existing cross correlation between Mekong Fisheries JSC and EVN Finance JSC, you can compare the effects of market volatilities on Mekong Fisheries and EVN Finance 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 Mekong Fisheries with a short position of EVN Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and EVN Finance.

Diversification Opportunities for Mekong Fisheries and EVN Finance

0.0

Correlation Coefficient

Mekong Fisheries  EVN Finance

Pay attention - limited upside

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

Pair Corralation between Mekong Fisheries and EVN Finance

If you would invest  703,000  in Mekong Fisheries JSC on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Mekong Fisheries JSC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.79%
Values	Daily Returns

Mekong Fisheries JSC  vs.  EVN Finance JSC

Mekong Fisheries JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mekong Fisheries JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Mekong Fisheries is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

EVN Finance JSC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EVN Finance JSC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, EVN Finance may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Mekong Fisheries and EVN Finance

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

The idea behind Mekong Fisheries JSC and EVN Finance JSC 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.