Correlation Between Hochiminh City and Nafoods Group
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and Nafoods Group 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 Hochiminh City and Nafoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochiminh City Metal and Nafoods Group JSC, you can compare the effects of market volatilities on Hochiminh City and Nafoods Group 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 Hochiminh City with a short position of Nafoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and Nafoods Group.
Diversification Opportunities for Hochiminh City and Nafoods Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hochiminh and Nafoods is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and Nafoods Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafoods Group JSC and Hochiminh City 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 Hochiminh City Metal are associated (or correlated) with Nafoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafoods Group JSC has no effect on the direction of Hochiminh City i.e., Hochiminh City and Nafoods Group go up and down completely randomly.
Pair Corralation between Hochiminh City and Nafoods Group
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 0.53 times more return on investment than Nafoods Group. However, Hochiminh City Metal is 1.89 times less risky than Nafoods Group. It trades about 0.11 of its potential returns per unit of risk. Nafoods Group JSC is currently generating about 0.05 per unit of risk. If you would invest 1,060,000 in Hochiminh City Metal on September 14, 2024 and sell it today you would earn a total of 80,000 from holding Hochiminh City Metal or generate 7.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Hochiminh City Metal vs. Nafoods Group JSC
Performance |
Timeline |
Hochiminh City Metal |
Nafoods Group JSC |
Hochiminh City and Nafoods Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hochiminh City and Nafoods Group
The main advantage of trading using opposite Hochiminh City and Nafoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, Nafoods Group 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 Nafoods Group will offset losses from the drop in Nafoods Group's long position.Hochiminh City vs. Saigon Viendong Technology | Hochiminh City vs. PetroVietnam Drilling Well | Hochiminh City vs. Post and Telecommunications | Hochiminh City vs. PVI Reinsurance Corp |
Nafoods Group vs. Vincom Retail JSC | Nafoods Group vs. Mobile World Investment | Nafoods Group vs. Fecon Mining JSC | Nafoods Group vs. Hanoi Beer Alcohol |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |