Correlation Between AgriBank Securities and VietinBank Securities

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

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

Diversification Opportunities for AgriBank Securities and VietinBank Securities

0.99

Correlation Coefficient

AgriBank Securities  VietinBank Securities

No risk reduction

The 3 months correlation between AgriBank and VietinBank is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding AgriBank Securities JSC and VietinBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VietinBank Securities JSC and AgriBank Securities 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 AgriBank Securities JSC are associated (or correlated) with VietinBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VietinBank Securities JSC has no effect on the direction of AgriBank Securities i.e., AgriBank Securities and VietinBank Securities go up and down completely randomly.

Pair Corralation between AgriBank Securities and VietinBank Securities

Assuming the 90 days trading horizon AgriBank Securities is expected to generate 1.6 times less return on investment than VietinBank Securities. But when comparing it to its historical volatility, AgriBank Securities JSC is 1.2 times less risky than VietinBank Securities. It trades about 0.13 of its potential returns per unit of risk. VietinBank Securities JSC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3,520,000  in VietinBank Securities JSC on December 24, 2024 and sell it today you would earn a total of  530,000  from holding VietinBank Securities JSC or generate 15.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

AgriBank Securities JSC  vs.  VietinBank Securities JSC

AgriBank Securities JSC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AgriBank Securities JSC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, AgriBank Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

VietinBank Securities JSC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VietinBank Securities JSC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, VietinBank Securities displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AgriBank Securities and VietinBank Securities

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

The idea behind AgriBank Securities JSC and VietinBank Securities 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.