Correlation Between Kien Giang and Viet Thanh

Can any of the company-specific risk be diversified away by investing in both Kien Giang and Viet 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 Kien Giang and Viet Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kien Giang Construction and Viet Thanh Plastic, you can compare the effects of market volatilities on Kien Giang and Viet 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 Kien Giang with a short position of Viet Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Viet Thanh.

Diversification Opportunities for Kien Giang and Viet Thanh

0.27

Correlation Coefficient

Kien Giang  Viet Thanh

Modest diversification

The 3 months correlation between Kien and Viet is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Viet Thanh Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Thanh Plastic and Kien Giang 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 Kien Giang Construction are associated (or correlated) with Viet Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Thanh Plastic has no effect on the direction of Kien Giang i.e., Kien Giang and Viet Thanh go up and down completely randomly.

Pair Corralation between Kien Giang and Viet Thanh

Assuming the 90 days trading horizon Kien Giang Construction is expected to generate 1.93 times more return on investment than Viet Thanh. However, Kien Giang is 1.93 times more volatile than Viet Thanh Plastic. It trades about 0.07 of its potential returns per unit of risk. Viet Thanh Plastic is currently generating about 0.12 per unit of risk. If you would invest  1,365,000  in Kien Giang Construction on May 7, 2025 and sell it today you would earn a total of  115,000  from holding Kien Giang Construction or generate 8.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Kien Giang Construction  vs.  Viet Thanh Plastic

Kien Giang Construction

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Kien Giang Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Kien Giang may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Viet Thanh Plastic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Viet Thanh Plastic are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Viet Thanh may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Kien Giang and Viet Thanh

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

The idea behind Kien Giang Construction and Viet Thanh Plastic 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.