Correlation Between 360 Finance and Ho Chi
Can any of the company-specific risk be diversified away by investing in both 360 Finance and Ho Chi 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 360 Finance and Ho Chi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Ho Chi Minh, you can compare the effects of market volatilities on 360 Finance and Ho Chi 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 360 Finance with a short position of Ho Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Ho Chi.
Diversification Opportunities for 360 Finance and Ho Chi
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 360 and HDB is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Ho Chi Minh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ho Chi Minh and 360 Finance 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 360 Finance are associated (or correlated) with Ho Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ho Chi Minh has no effect on the direction of 360 Finance i.e., 360 Finance and Ho Chi go up and down completely randomly.
Pair Corralation between 360 Finance and Ho Chi
Given the investment horizon of 90 days 360 Finance is expected to generate 1.57 times less return on investment than Ho Chi. In addition to that, 360 Finance is 1.08 times more volatile than Ho Chi Minh. It trades about 0.16 of its total potential returns per unit of risk. Ho Chi Minh is currently generating about 0.27 per unit of volatility. If you would invest 2,225,000 in Ho Chi Minh on October 6, 2024 and sell it today you would earn a total of 285,000 from holding Ho Chi Minh or generate 12.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
360 Finance vs. Ho Chi Minh
Performance |
Timeline |
360 Finance |
Ho Chi Minh |
360 Finance and Ho Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 360 Finance and Ho Chi
The main advantage of trading using opposite 360 Finance and Ho Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance position performs unexpectedly, Ho Chi 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 Ho Chi will offset losses from the drop in Ho Chi's long position.360 Finance vs. Ecolab Inc | 360 Finance vs. Pool Corporation | 360 Finance vs. Simon Property Group | 360 Finance vs. Park Electrochemical |
Ho Chi vs. VTC Telecommunications JSC | Ho Chi vs. Danang Rubber JSC | Ho Chi vs. Tri Viet Management | Ho Chi vs. Elcom Technology Communications |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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