Correlation Between Hochiminh City and SSI Securities
Can any of the company-specific risk be diversified away by investing in both Hochiminh City and SSI Securities 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 SSI Securities 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 SSI Securities Corp, you can compare the effects of market volatilities on Hochiminh City and SSI Securities 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 SSI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochiminh City and SSI Securities.
Diversification Opportunities for Hochiminh City and SSI Securities
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hochiminh and SSI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hochiminh City Metal and SSI Securities Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSI Securities Corp 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 SSI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSI Securities Corp has no effect on the direction of Hochiminh City i.e., Hochiminh City and SSI Securities go up and down completely randomly.
Pair Corralation between Hochiminh City and SSI Securities
Assuming the 90 days trading horizon Hochiminh City Metal is expected to generate 0.52 times more return on investment than SSI Securities. However, Hochiminh City Metal is 1.91 times less risky than SSI Securities. It trades about 0.32 of its potential returns per unit of risk. SSI Securities Corp is currently generating about 0.16 per unit of risk. If you would invest 1,090,000 in Hochiminh City Metal on September 25, 2024 and sell it today you would earn a total of 70,000 from holding Hochiminh City Metal or generate 6.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hochiminh City Metal vs. SSI Securities Corp
Performance |
Timeline |
Hochiminh City Metal |
SSI Securities Corp |
Hochiminh City and SSI Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hochiminh City and SSI Securities
The main advantage of trading using opposite Hochiminh City and SSI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochiminh City position performs unexpectedly, SSI Securities 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 SSI Securities will offset losses from the drop in SSI Securities' long position.Hochiminh City vs. FIT INVEST JSC | Hochiminh City vs. Damsan JSC | Hochiminh City vs. An Phat Plastic | Hochiminh City vs. Alphanam ME |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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