Correlation Between Vnsteel Vicasa and 1369 Construction

Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and 1369 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 Vnsteel Vicasa and 1369 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vnsteel Vicasa JSC and 1369 Construction JSC, you can compare the effects of market volatilities on Vnsteel Vicasa and 1369 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 Vnsteel Vicasa with a short position of 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and 1369 Construction.

Diversification Opportunities for Vnsteel Vicasa and 1369 Construction

0.26

Correlation Coefficient

Vnsteel Vicasa  1369 Construction

Modest diversification

The 3 months correlation between Vnsteel and 1369 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC and Vnsteel Vicasa 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 Vnsteel Vicasa JSC are associated (or correlated) with 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and 1369 Construction go up and down completely randomly.

Pair Corralation between Vnsteel Vicasa and 1369 Construction

Assuming the 90 days trading horizon Vnsteel Vicasa is expected to generate 14.87 times less return on investment than 1369 Construction. But when comparing it to its historical volatility, Vnsteel Vicasa JSC is 1.2 times less risky than 1369 Construction. It trades about 0.02 of its potential returns per unit of risk. 1369 Construction JSC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  610,000  in 1369 Construction JSC on May 7, 2025 and sell it today you would earn a total of  340,000  from holding 1369 Construction JSC or generate 55.74% return on investment over 90 days.

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

Vnsteel Vicasa JSC  vs.  1369 Construction JSC

Vnsteel Vicasa JSC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vnsteel Vicasa JSC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Vnsteel Vicasa is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

1369 Construction JSC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in 1369 Construction JSC are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, 1369 Construction displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vnsteel Vicasa and 1369 Construction

The main advantage of trading using opposite Vnsteel Vicasa and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, 1369 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.

The idea behind Vnsteel Vicasa JSC and 1369 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.