Correlation Between South Basic and SSIAM VNFIN
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By analyzing existing cross correlation between South Basic Chemicals and SSIAM VNFIN LEAD, you can compare the effects of market volatilities on South Basic and SSIAM VNFIN 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 South Basic with a short position of SSIAM VNFIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of South Basic and SSIAM VNFIN.
Diversification Opportunities for South Basic and SSIAM VNFIN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between South and SSIAM is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding South Basic Chemicals and SSIAM VNFIN LEAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSIAM VNFIN LEAD and South Basic 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 South Basic Chemicals are associated (or correlated) with SSIAM VNFIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSIAM VNFIN LEAD has no effect on the direction of South Basic i.e., South Basic and SSIAM VNFIN go up and down completely randomly.
Pair Corralation between South Basic and SSIAM VNFIN
Assuming the 90 days trading horizon South Basic Chemicals is expected to under-perform the SSIAM VNFIN. In addition to that, South Basic is 1.73 times more volatile than SSIAM VNFIN LEAD. It trades about -0.13 of its total potential returns per unit of risk. SSIAM VNFIN LEAD is currently generating about 0.15 per unit of volatility. If you would invest 2,214,000 in SSIAM VNFIN LEAD on December 30, 2024 and sell it today you would earn a total of 196,000 from holding SSIAM VNFIN LEAD or generate 8.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
South Basic Chemicals vs. SSIAM VNFIN LEAD
Performance |
Timeline |
South Basic Chemicals |
SSIAM VNFIN LEAD |
South Basic and SSIAM VNFIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with South Basic and SSIAM VNFIN
The main advantage of trading using opposite South Basic and SSIAM VNFIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if South Basic position performs unexpectedly, SSIAM VNFIN 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 SSIAM VNFIN will offset losses from the drop in SSIAM VNFIN's long position.South Basic vs. Hanoi Plastics JSC | South Basic vs. Phuoc Hoa Rubber | South Basic vs. Sao Ta Foods | South Basic vs. Post and Telecommunications |
SSIAM VNFIN vs. SSIAM VN30 ETF | SSIAM VNFIN vs. SSIAM VNX50 ETF | SSIAM VNFIN vs. KIM GROWTH VN30 | SSIAM VNFIN vs. FPT CAPITAL VNX50 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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