Correlation Between Vu Dang and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both Vu Dang and Ben Thanh 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 Vu Dang and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vu Dang Investment and Ben Thanh Rubber, you can compare the effects of market volatilities on Vu Dang and Ben Thanh 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 Vu Dang with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and Ben Thanh.
Diversification Opportunities for Vu Dang and Ben Thanh
Excellent diversification
The 3 months correlation between SVD and Ben is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and Vu Dang 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 Vu Dang Investment are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of Vu Dang i.e., Vu Dang and Ben Thanh go up and down completely randomly.
Pair Corralation between Vu Dang and Ben Thanh
Assuming the 90 days trading horizon Vu Dang Investment is expected to generate 1.82 times more return on investment than Ben Thanh. However, Vu Dang is 1.82 times more volatile than Ben Thanh Rubber. It trades about 0.03 of its potential returns per unit of risk. Ben Thanh Rubber is currently generating about -0.04 per unit of risk. If you would invest 321,000 in Vu Dang Investment on December 5, 2024 and sell it today you would earn a total of 5,000 from holding Vu Dang Investment or generate 1.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.3% |
Values | Daily Returns |
Vu Dang Investment vs. Ben Thanh Rubber
Performance |
Timeline |
Vu Dang Investment |
Ben Thanh Rubber |
Vu Dang and Ben Thanh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vu Dang and Ben Thanh
The main advantage of trading using opposite Vu Dang and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.Vu Dang vs. DOMESCO Medical Import | Vu Dang vs. Transport and Industry | Vu Dang vs. Innovative Technology Development | Vu Dang vs. Vietnam Dairy Products |
Ben Thanh vs. Tri Viet Management | Ben Thanh vs. Kien Giang Construction | Ben Thanh vs. Transport and Industry | Ben Thanh vs. Viettel Construction JSC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |