Correlation Between Vnsteel Vicasa and Techno Agricultural

Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and Techno Agricultural 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 Vnsteel Vicasa and Techno Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vnsteel Vicasa JSC and Techno Agricultural Supplying, you can compare the effects of market volatilities on Vnsteel Vicasa and Techno Agricultural 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 Vnsteel Vicasa with a short position of Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and Techno Agricultural.

Diversification Opportunities for Vnsteel Vicasa and Techno Agricultural

0.15

Correlation Coefficient

Vnsteel Vicasa  Techno Agricultural

Average diversification

The 3 months correlation between Vnsteel and Techno is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural and Vnsteel Vicasa 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 Vnsteel Vicasa JSC are associated (or correlated) with Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and Techno Agricultural go up and down completely randomly.

Pair Corralation between Vnsteel Vicasa and Techno Agricultural

Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the Techno Agricultural. In addition to that, Vnsteel Vicasa is 2.12 times more volatile than Techno Agricultural Supplying. It trades about -0.03 of its total potential returns per unit of risk. Techno Agricultural Supplying is currently generating about 0.1 per unit of volatility. If you would invest  245,000  in Techno Agricultural Supplying on December 23, 2024 and sell it today you would earn a total of  19,000  from holding Techno Agricultural Supplying or generate 7.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vnsteel Vicasa JSC  vs.  Techno Agricultural Supplying

Vnsteel Vicasa JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vnsteel Vicasa JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Vnsteel Vicasa is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Techno Agricultural

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Techno Agricultural Supplying are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Techno Agricultural may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vnsteel Vicasa and Techno Agricultural

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

The idea behind Vnsteel Vicasa JSC and Techno Agricultural Supplying 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.