Correlation Between Everland Investment and Vu Dang

Can any of the company-specific risk be diversified away by investing in both Everland Investment and Vu Dang 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 Everland Investment and Vu Dang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Everland Investment JSC and Vu Dang Investment, you can compare the effects of market volatilities on Everland Investment and Vu Dang 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 Everland Investment with a short position of Vu Dang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everland Investment and Vu Dang.

Diversification Opportunities for Everland Investment and Vu Dang

0.62

Correlation Coefficient

Everland Investment  Vu Dang

Poor diversification

The 3 months correlation between Everland and SVD is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Everland Investment JSC and Vu Dang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vu Dang Investment and Everland Investment 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 Everland Investment JSC are associated (or correlated) with Vu Dang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vu Dang Investment has no effect on the direction of Everland Investment i.e., Everland Investment and Vu Dang go up and down completely randomly.

Pair Corralation between Everland Investment and Vu Dang

Assuming the 90 days trading horizon Everland Investment JSC is expected to generate 0.87 times more return on investment than Vu Dang. However, Everland Investment JSC is 1.15 times less risky than Vu Dang. It trades about 0.19 of its potential returns per unit of risk. Vu Dang Investment is currently generating about 0.14 per unit of risk. If you would invest  603,000  in Everland Investment JSC on May 6, 2025 and sell it today you would earn a total of  195,000  from holding Everland Investment JSC or generate 32.34% return on investment over 90 days.

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

Everland Investment JSC  vs.  Vu Dang Investment

Everland Investment JSC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Everland Investment JSC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Everland Investment displayed solid returns over the last few months and may actually be approaching a breakup point.

Vu Dang Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vu Dang Investment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Vu Dang displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Everland Investment and Vu Dang

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

The idea behind Everland Investment JSC and Vu Dang Investment 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 Stocks Directory module to find actively traded stocks across global markets.