Correlation Between Viettel Construction and HNX

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

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

Diversification Opportunities for Viettel Construction and HNX

0.0

Correlation Coefficient

Viettel Construction  HNX

Pay attention - limited upside

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

Pair Corralation between Viettel Construction and HNX

If you would invest  0.00  in HNX on October 10, 2024 and sell it today you would earn a total of  0.00  from holding HNX or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Viettel Construction JSC  vs.  HNX

Pair Trading with Viettel Construction and HNX

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

The idea behind Viettel Construction JSC and HNX 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.