Correlation Between Saigon Telecommunicatio and Binh Thuan

Can any of the company-specific risk be diversified away by investing in both Saigon Telecommunicatio and Binh Thuan 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 Saigon Telecommunicatio and Binh Thuan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saigon Telecommunication Technologies and Binh Thuan Books, you can compare the effects of market volatilities on Saigon Telecommunicatio and Binh Thuan 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 Saigon Telecommunicatio with a short position of Binh Thuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Telecommunicatio and Binh Thuan.

Diversification Opportunities for Saigon Telecommunicatio and Binh Thuan

-0.58

Correlation Coefficient

Saigon Telecommunicatio  Binh Thuan

Excellent diversification

The 3 months correlation between Saigon and Binh is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Telecommunication Techn and Binh Thuan Books in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Thuan Books and Saigon Telecommunicatio 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 Saigon Telecommunication Technologies are associated (or correlated) with Binh Thuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Thuan Books has no effect on the direction of Saigon Telecommunicatio i.e., Saigon Telecommunicatio and Binh Thuan go up and down completely randomly.

Pair Corralation between Saigon Telecommunicatio and Binh Thuan

Assuming the 90 days trading horizon Saigon Telecommunication Technologies is expected to generate 0.46 times more return on investment than Binh Thuan. However, Saigon Telecommunication Technologies is 2.16 times less risky than Binh Thuan. It trades about 0.16 of its potential returns per unit of risk. Binh Thuan Books is currently generating about 0.02 per unit of risk. If you would invest  1,675,000  in Saigon Telecommunication Technologies on December 20, 2024 and sell it today you would earn a total of  325,000  from holding Saigon Telecommunication Technologies or generate 19.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	74.58%
Values	Daily Returns

Saigon Telecommunication Techn  vs.  Binh Thuan Books

Saigon Telecommunicatio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Saigon Telecommunication Technologies are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Saigon Telecommunicatio displayed solid returns over the last few months and may actually be approaching a breakup point.

Binh Thuan Books

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Binh Thuan Books are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Binh Thuan may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Saigon Telecommunicatio and Binh Thuan

The main advantage of trading using opposite Saigon Telecommunicatio and Binh Thuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Telecommunicatio position performs unexpectedly, Binh Thuan 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 Binh Thuan will offset losses from the drop in Binh Thuan's long position.

The idea behind Saigon Telecommunication Technologies and Binh Thuan Books pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.