Correlation Between Picomat Plastic and Vietnam Construction

Can any of the company-specific risk be diversified away by investing in both Picomat Plastic and Vietnam Construction 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 Picomat Plastic and Vietnam Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Picomat Plastic and Vietnam Construction

0.57

Correlation Coefficient

Picomat Plastic  Vietnam Construction

Very weak diversification

The 3 months correlation between Picomat and Vietnam is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Picomat Plastic JSC and Vietnam Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Construction JSC and Picomat Plastic 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 Picomat Plastic JSC are associated (or correlated) with Vietnam Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Construction JSC has no effect on the direction of Picomat Plastic i.e., Picomat Plastic and Vietnam Construction go up and down completely randomly.

Pair Corralation between Picomat Plastic and Vietnam Construction

Assuming the 90 days trading horizon Picomat Plastic JSC is expected to generate 2.57 times more return on investment than Vietnam Construction. However, Picomat Plastic is 2.57 times more volatile than Vietnam Construction JSC. It trades about 0.14 of its potential returns per unit of risk. Vietnam Construction JSC is currently generating about 0.14 per unit of risk. If you would invest  1,510,000  in Picomat Plastic JSC on May 6, 2025 and sell it today you would earn a total of  310,000  from holding Picomat Plastic JSC or generate 20.53% return on investment over 90 days.

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

Picomat Plastic JSC  vs.  Vietnam Construction JSC

Picomat Plastic JSC

Risk-Adjusted Performance

Good

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

Vietnam Construction JSC

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vietnam Construction JSC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Vietnam Construction may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Picomat Plastic and Vietnam Construction

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

The idea behind Picomat Plastic JSC and Vietnam Construction JSC 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.