Correlation Between Everland Investment and Kien Giang
Can any of the company-specific risk be diversified away by investing in both Everland Investment and Kien Giang 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 Everland Investment and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everland Investment JSC and Kien Giang Construction, you can compare the effects of market volatilities on Everland Investment and Kien Giang 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 Everland Investment with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everland Investment and Kien Giang.
Diversification Opportunities for Everland Investment and Kien Giang
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Everland and Kien is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Everland Investment JSC and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Everland 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 Everland Investment JSC are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Everland Investment i.e., Everland Investment and Kien Giang go up and down completely randomly.
Pair Corralation between Everland Investment and Kien Giang
Assuming the 90 days trading horizon Everland Investment JSC is expected to generate 1.43 times more return on investment than Kien Giang. However, Everland Investment is 1.43 times more volatile than Kien Giang Construction. It trades about 0.02 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.02 per unit of risk. If you would invest 566,000 in Everland Investment JSC on October 22, 2024 and sell it today you would earn a total of 39,000 from holding Everland Investment JSC or generate 6.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Everland Investment JSC vs. Kien Giang Construction
Performance |
Timeline |
Everland Investment JSC |
Kien Giang Construction |
Everland Investment and Kien Giang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Everland Investment and Kien Giang
The main advantage of trading using opposite Everland Investment and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everland Investment position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.Everland Investment vs. Vu Dang Investment | Everland Investment vs. MST Investment JSC | Everland Investment vs. PV2 Investment JSC | Everland Investment vs. Elcom Technology Communications |
Kien Giang vs. Elcom Technology Communications | Kien Giang vs. Investment And Construction | Kien Giang vs. Vietnam Construction JSC | Kien Giang vs. Tin Nghia Industrial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |