Correlation Between Post and Vietnam National

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

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

Diversification Opportunities for Post and Vietnam National

0.71

Correlation Coefficient

Post  Vietnam National

Poor diversification

The 3 months correlation between Post and Vietnam is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Vietnam National Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam National Rei and Post 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 Post and Telecommunications are associated (or correlated) with Vietnam National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam National Rei has no effect on the direction of Post i.e., Post and Vietnam National go up and down completely randomly.

Pair Corralation between Post and Vietnam National

Assuming the 90 days trading horizon Post and Telecommunications is expected to generate 2.42 times more return on investment than Vietnam National. However, Post is 2.42 times more volatile than Vietnam National Reinsurance. It trades about 0.2 of its potential returns per unit of risk. Vietnam National Reinsurance is currently generating about 0.12 per unit of risk. If you would invest  580,000  in Post and Telecommunications on May 6, 2025 and sell it today you would earn a total of  180,000  from holding Post and Telecommunications or generate 31.03% return on investment over 90 days.

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

Post and Telecommunications  vs.  Vietnam National Reinsurance

Post and Telecommuni

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Post and Telecommunications are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Post displayed solid returns over the last few months and may actually be approaching a breakup point.

Vietnam National Rei

Risk-Adjusted Performance

OK

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

Pair Trading with Post and Vietnam National

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

The idea behind Post and Telecommunications and Vietnam National Reinsurance 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.