Correlation Between Saigon Viendong and Binh Thanh
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong and Binh 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 Saigon Viendong and Binh Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Viendong Technology and Binh Thanh Import, you can compare the effects of market volatilities on Saigon Viendong and Binh 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 Saigon Viendong with a short position of Binh Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Binh Thanh.
Diversification Opportunities for Saigon Viendong and Binh Thanh
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saigon and Binh is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Binh Thanh Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Thanh Import and Saigon Viendong 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 Viendong Technology are associated (or correlated) with Binh Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Thanh Import has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Binh Thanh go up and down completely randomly.
Pair Corralation between Saigon Viendong and Binh Thanh
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 0.33 times more return on investment than Binh Thanh. However, Saigon Viendong Technology is 3.03 times less risky than Binh Thanh. It trades about 0.12 of its potential returns per unit of risk. Binh Thanh Import is currently generating about -0.06 per unit of risk. If you would invest 1,135,000 in Saigon Viendong Technology on September 25, 2024 and sell it today you would earn a total of 95,000 from holding Saigon Viendong Technology or generate 8.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 92.86% |
Values | Daily Returns |
Saigon Viendong Technology vs. Binh Thanh Import
Performance |
Timeline |
Saigon Viendong Tech |
Binh Thanh Import |
Saigon Viendong and Binh Thanh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saigon Viendong and Binh Thanh
The main advantage of trading using opposite Saigon Viendong and Binh Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong position performs unexpectedly, Binh 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 Binh Thanh will offset losses from the drop in Binh Thanh's long position.Saigon Viendong vs. LDG Investment JSC | Saigon Viendong vs. Dinhvu Port Investment | Saigon Viendong vs. Elcom Technology Communications | Saigon Viendong vs. Asia Pacific Investment |
Binh Thanh vs. VietinBank Securities JSC | Binh Thanh vs. Saigon Viendong Technology | Binh Thanh vs. Elcom Technology Communications | Binh Thanh vs. BaoMinh Insurance Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |