Correlation Between SMC Investment and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both SMC Investment and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on SMC Investment and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMC Investment and Saigon Viendong.
Diversification Opportunities for SMC Investment and Saigon Viendong
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SMC and Saigon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SMC Investment Trading and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of SMC Investment i.e., SMC Investment and Saigon Viendong go up and down completely randomly.
Pair Corralation between SMC Investment and Saigon Viendong
Assuming the 90 days trading horizon SMC Investment Trading is expected to under-perform the Saigon Viendong. In addition to that, SMC Investment is 1.23 times more volatile than Saigon Viendong Technology. It trades about 0.0 of its total potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.05 per unit of volatility. If you would invest 835,930 in Saigon Viendong Technology on September 26, 2024 and sell it today you would earn a total of 374,070 from holding Saigon Viendong Technology or generate 44.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.93% |
Values | Daily Returns |
SMC Investment Trading vs. Saigon Viendong Technology
Performance |
Timeline |
SMC Investment Trading |
Saigon Viendong Tech |
SMC Investment and Saigon Viendong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SMC Investment and Saigon Viendong
The main advantage of trading using opposite SMC Investment and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMC Investment position performs unexpectedly, Saigon Viendong 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 Viendong will offset losses from the drop in Saigon Viendong's long position.SMC Investment vs. Saigon Viendong Technology | SMC Investment vs. Hochiminh City Metal | SMC Investment vs. Ba Ria Thermal | SMC Investment vs. Bich Chi Food |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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