Correlation Between VinaCapital Vietnam and GraniteShares

Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and GraniteShares 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 GraniteShares 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 GraniteShares 3x Short, you can compare the effects of market volatilities on VinaCapital Vietnam and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and GraniteShares.

Diversification Opportunities for VinaCapital Vietnam and GraniteShares

-0.39

Correlation Coefficient

VinaCapital Vietnam  GraniteShares

Very good diversification

The 3 months correlation between VinaCapital and GraniteShares is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and GraniteShares go up and down completely randomly.

Pair Corralation between VinaCapital Vietnam and GraniteShares

Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to generate 0.09 times more return on investment than GraniteShares. However, VinaCapital Vietnam Opportunity is 11.68 times less risky than GraniteShares. It trades about 0.03 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.17 per unit of risk. If you would invest  46,838  in VinaCapital Vietnam Opportunity on October 6, 2024 and sell it today you would earn a total of  812.00  from holding VinaCapital Vietnam Opportunity or generate 1.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

VinaCapital Vietnam Opportunit  vs.  GraniteShares 3x Short

VinaCapital Vietnam

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VinaCapital Vietnam Opportunity are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, VinaCapital Vietnam is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

GraniteShares 3x Short

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GraniteShares 3x Short has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Pair Trading with VinaCapital Vietnam and GraniteShares

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

The idea behind VinaCapital Vietnam Opportunity and GraniteShares 3x Short 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.