Correlation Between Cuulong Fish and Vincom Retail

Can any of the company-specific risk be diversified away by investing in both Cuulong Fish 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 Cuulong Fish and Vincom Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Cuulong Fish and Vincom Retail

-0.84

Correlation Coefficient

Cuulong Fish  Vincom Retail

Pay attention - limited upside

The 3 months correlation between Cuulong and Vincom is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cuulong Fish JSC 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 Cuulong Fish 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 Cuulong Fish JSC 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 Cuulong Fish i.e., Cuulong Fish and Vincom Retail go up and down completely randomly.

Pair Corralation between Cuulong Fish and Vincom Retail

Assuming the 90 days trading horizon Cuulong Fish JSC is expected to under-perform the Vincom Retail. But the stock apears to be less risky and, when comparing its historical volatility, Cuulong Fish JSC is 2.41 times less risky than Vincom Retail. The stock trades about -0.24 of its potential returns per unit of risk. The Vincom Retail JSC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,715,000  in Vincom Retail JSC on December 30, 2024 and sell it today you would earn a total of  231,000  from holding Vincom Retail JSC or generate 13.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.67%
Values	Daily Returns

Cuulong Fish JSC  vs.  Vincom Retail JSC

Cuulong Fish JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cuulong Fish JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Vincom Retail JSC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vincom Retail JSC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Vincom Retail displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cuulong Fish and Vincom Retail

The main advantage of trading using opposite Cuulong Fish and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuulong Fish 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.

The idea behind Cuulong Fish JSC and Vincom Retail 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.