Correlation Between MST Investment and Saigon Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both MST Investment and Saigon Telecommunicatio 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 MST Investment and Saigon Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MST Investment JSC and Saigon Telecommunication Technologies, you can compare the effects of market volatilities on MST Investment and Saigon Telecommunicatio 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 MST Investment with a short position of Saigon Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Saigon Telecommunicatio.
Diversification Opportunities for MST Investment and Saigon Telecommunicatio
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MST and Saigon is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Saigon Telecommunication Techn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Telecommunicatio and MST 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 MST Investment JSC are associated (or correlated) with Saigon Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Telecommunicatio has no effect on the direction of MST Investment i.e., MST Investment and Saigon Telecommunicatio go up and down completely randomly.
Pair Corralation between MST Investment and Saigon Telecommunicatio
Assuming the 90 days trading horizon MST Investment JSC is expected to under-perform the Saigon Telecommunicatio. In addition to that, MST Investment is 1.19 times more volatile than Saigon Telecommunication Technologies. It trades about -0.01 of its total potential returns per unit of risk. Saigon Telecommunication Technologies is currently generating about 0.08 per unit of volatility. If you would invest 1,850,000 in Saigon Telecommunication Technologies on December 28, 2024 and sell it today you would earn a total of 145,000 from holding Saigon Telecommunication Technologies or generate 7.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MST Investment JSC vs. Saigon Telecommunication Techn
Performance |
Timeline |
MST Investment JSC |
Saigon Telecommunicatio |
MST Investment and Saigon Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MST Investment and Saigon Telecommunicatio
The main advantage of trading using opposite MST Investment and Saigon Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Saigon Telecommunicatio 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 Saigon Telecommunicatio will offset losses from the drop in Saigon Telecommunicatio's long position.MST Investment vs. Travel Investment and | MST Investment vs. Phuoc Hoa Rubber | MST Investment vs. Vu Dang Investment | MST Investment vs. Binh Minh Plastics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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