Correlation Between SMC Investment and Ha Noi

Can any of the company-specific risk be diversified away by investing in both SMC Investment and Ha Noi 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 SMC Investment and Ha Noi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SMC Investment Trading and Ha Noi Education, you can compare the effects of market volatilities on SMC Investment and Ha Noi 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 SMC Investment with a short position of Ha Noi. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMC Investment and Ha Noi.

Diversification Opportunities for SMC Investment and Ha Noi

-0.18

Correlation Coefficient

SMC Investment  Ha Noi

Good diversification

The 3 months correlation between SMC and EID is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SMC Investment Trading and Ha Noi Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Noi Education and SMC 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 SMC Investment Trading are associated (or correlated) with Ha Noi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Noi Education has no effect on the direction of SMC Investment i.e., SMC Investment and Ha Noi go up and down completely randomly.

Pair Corralation between SMC Investment and Ha Noi

Assuming the 90 days trading horizon SMC Investment Trading is expected to generate 3.08 times more return on investment than Ha Noi. However, SMC Investment is 3.08 times more volatile than Ha Noi Education. It trades about 0.25 of its potential returns per unit of risk. Ha Noi Education is currently generating about -0.2 per unit of risk. If you would invest  695,000  in SMC Investment Trading on September 22, 2024 and sell it today you would earn a total of  109,000  from holding SMC Investment Trading or generate 15.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

SMC Investment Trading  vs.  Ha Noi Education

SMC Investment Trading

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SMC Investment Trading are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, SMC Investment may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Ha Noi Education

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ha Noi Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with SMC Investment and Ha Noi

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

The idea behind SMC Investment Trading and Ha Noi Education 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..