Correlation Between Viettel Construction and Techno Agricultural

Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Techno Agricultural 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 Techno Agricultural 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 Techno Agricultural Supplying, you can compare the effects of market volatilities on Viettel Construction and Techno Agricultural 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 Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Techno Agricultural.

Diversification Opportunities for Viettel Construction and Techno Agricultural

-0.79

Correlation Coefficient

Viettel Construction  Techno Agricultural

Pay attention - limited upside

The 3 months correlation between Viettel and Techno is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural 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 Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Viettel Construction i.e., Viettel Construction and Techno Agricultural go up and down completely randomly.

Pair Corralation between Viettel Construction and Techno Agricultural

Assuming the 90 days trading horizon Viettel Construction JSC is expected to under-perform the Techno Agricultural. In addition to that, Viettel Construction is 1.14 times more volatile than Techno Agricultural Supplying. It trades about -0.16 of its total potential returns per unit of risk. Techno Agricultural Supplying is currently generating about 0.17 per unit of volatility. If you would invest  246,000  in Techno Agricultural Supplying on December 29, 2024 and sell it today you would earn a total of  40,000  from holding Techno Agricultural Supplying or generate 16.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Viettel Construction JSC  vs.  Techno Agricultural Supplying

Viettel Construction JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viettel Construction JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Techno Agricultural

Risk-Adjusted Performance

Good

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

Pair Trading with Viettel Construction and Techno Agricultural

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

The idea behind Viettel Construction JSC and Techno Agricultural Supplying 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.