Correlation Between Investment and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both Investment and Viettel Construction 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 Investment and Viettel Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment and Industrial and Viettel Construction JSC, you can compare the effects of market volatilities on Investment and Viettel Construction 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 Investment with a short position of Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Viettel Construction.
Diversification Opportunities for Investment and Viettel Construction
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investment and Viettel is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Investment and Industrial and Viettel Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viettel Construction JSC and Investment 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 Investment and Industrial are associated (or correlated) with Viettel Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viettel Construction JSC has no effect on the direction of Investment i.e., Investment and Viettel Construction go up and down completely randomly.
Pair Corralation between Investment and Viettel Construction
Assuming the 90 days trading horizon Investment and Industrial is expected to under-perform the Viettel Construction. But the stock apears to be less risky and, when comparing its historical volatility, Investment and Industrial is 1.39 times less risky than Viettel Construction. The stock trades about -0.02 of its potential returns per unit of risk. The Viettel Construction JSC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,841,774 in Viettel Construction JSC on October 25, 2024 and sell it today you would earn a total of 7,538,226 from holding Viettel Construction JSC or generate 129.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Investment and Industrial vs. Viettel Construction JSC
Performance |
Timeline |
Investment and Industrial |
Viettel Construction JSC |
Investment and Viettel Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Investment and Viettel Construction
The main advantage of trading using opposite Investment and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, Viettel Construction 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 Viettel Construction will offset losses from the drop in Viettel Construction's long position.Investment vs. FIT INVEST JSC | Investment vs. Damsan JSC | Investment vs. An Phat Plastic | Investment vs. APG Securities Joint |
Viettel Construction vs. FIT INVEST JSC | Viettel Construction vs. Damsan JSC | Viettel Construction vs. An Phat Plastic | Viettel Construction vs. APG Securities Joint |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
CEOs Directory Screen CEOs from public companies around the world | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |