Correlation Between Saigon Viendong and Long Giang

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

By analyzing existing cross correlation between Saigon Viendong Technology and Long Giang Investment, you can compare the effects of market volatilities on Saigon Viendong and Long Giang 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 Saigon Viendong with a short position of Long Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and Long Giang.

Diversification Opportunities for Saigon Viendong and Long Giang

0.3

Correlation Coefficient

Saigon Viendong  Long Giang

Weak diversification

The 3 months correlation between Saigon and Long is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology and Long Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Giang Investment and Saigon Viendong 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 Saigon Viendong Technology are associated (or correlated) with Long Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Giang Investment has no effect on the direction of Saigon Viendong i.e., Saigon Viendong and Long Giang go up and down completely randomly.

Pair Corralation between Saigon Viendong and Long Giang

Assuming the 90 days trading horizon Saigon Viendong is expected to generate 17.43 times less return on investment than Long Giang. But when comparing it to its historical volatility, Saigon Viendong Technology is 4.83 times less risky than Long Giang. It trades about 0.05 of its potential returns per unit of risk. Long Giang Investment is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  311,000  in Long Giang Investment on May 5, 2025 and sell it today you would earn a total of  107,000  from holding Long Giang Investment or generate 34.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.42%
Values	Daily Returns

Saigon Viendong Technology  vs.  Long Giang Investment

Saigon Viendong Tech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Saigon Viendong Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Saigon Viendong is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Long Giang Investment

Risk-Adjusted Performance

Good

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

Pair Trading with Saigon Viendong and Long Giang

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

The idea behind Saigon Viendong Technology and Long Giang 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..