Correlation Between VietinBank Securities and Development Investment

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

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

Diversification Opportunities for VietinBank Securities and Development Investment

-0.04

Correlation Coefficient

VietinBank Securities  Development Investment

Good diversification

The 3 months correlation between VietinBank and Development is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC and Development Investment Constru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Development Investment and VietinBank 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 VietinBank Securities JSC are associated (or correlated) with Development Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Development Investment has no effect on the direction of VietinBank Securities i.e., VietinBank Securities and Development Investment go up and down completely randomly.

Pair Corralation between VietinBank Securities and Development Investment

Assuming the 90 days trading horizon VietinBank Securities JSC is expected to generate 0.78 times more return on investment than Development Investment. However, VietinBank Securities JSC is 1.29 times less risky than Development Investment. It trades about 0.16 of its potential returns per unit of risk. Development Investment Construction is currently generating about 0.02 per unit of risk. If you would invest  3,585,000  in VietinBank Securities JSC on December 25, 2024 and sell it today you would earn a total of  465,000  from holding VietinBank Securities JSC or generate 12.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.66%
Values	Daily Returns

VietinBank Securities JSC  vs.  Development Investment Constru

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 12 (%) 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.

Development Investment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Development Investment Construction are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical indicators, Development Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with VietinBank Securities and Development Investment

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

The idea behind VietinBank Securities JSC and Development Investment Construction 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.