Correlation Between VinaCapital Vietnam and JPM Green
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and JPM Green 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 VinaCapital Vietnam and JPM Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinaCapital Vietnam Opportunity and JPM Green Social, you can compare the effects of market volatilities on VinaCapital Vietnam and JPM Green 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 VinaCapital Vietnam with a short position of JPM Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and JPM Green.
Diversification Opportunities for VinaCapital Vietnam and JPM Green
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VinaCapital and JPM is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and JPM Green Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Green Social and VinaCapital Vietnam 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 VinaCapital Vietnam Opportunity are associated (or correlated) with JPM Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Green Social has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and JPM Green go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and JPM Green
Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to under-perform the JPM Green. In addition to that, VinaCapital Vietnam is 2.67 times more volatile than JPM Green Social. It trades about -0.08 of its total potential returns per unit of risk. JPM Green Social is currently generating about 0.14 per unit of volatility. If you would invest 10,619 in JPM Green Social on December 25, 2024 and sell it today you would earn a total of 327.00 from holding JPM Green Social or generate 3.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. JPM Green Social
Performance |
Timeline |
VinaCapital Vietnam |
JPM Green Social |
VinaCapital Vietnam and JPM Green Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VinaCapital Vietnam and JPM Green
The main advantage of trading using opposite VinaCapital Vietnam and JPM Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam position performs unexpectedly, JPM Green 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 JPM Green will offset losses from the drop in JPM Green's long position.VinaCapital Vietnam vs. Edinburgh Worldwide Investment | VinaCapital Vietnam vs. BlackRock Latin American | VinaCapital Vietnam vs. iShares MSCI Japan | VinaCapital Vietnam vs. Amundi EUR High |
JPM Green vs. JPM BetaBuilders China | JPM Green vs. JPM AC Asia | JPM Green vs. JPM BetaBuilders Treasury | JPM Green vs. JPM Research Enhanced |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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