Correlation Between Vinhomes JSC and Everland Investment

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

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

Diversification Opportunities for Vinhomes JSC and Everland Investment

0.66

Correlation Coefficient

Vinhomes JSC  Everland Investment

Poor diversification

The 3 months correlation between Vinhomes and Everland is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC and Everland Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everland Investment JSC and Vinhomes JSC 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 Vinhomes JSC are associated (or correlated) with Everland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everland Investment JSC has no effect on the direction of Vinhomes JSC i.e., Vinhomes JSC and Everland Investment go up and down completely randomly.

Pair Corralation between Vinhomes JSC and Everland Investment

Assuming the 90 days trading horizon Vinhomes JSC is expected to generate 1.06 times more return on investment than Everland Investment. However, Vinhomes JSC is 1.06 times more volatile than Everland Investment JSC. It trades about 0.23 of its potential returns per unit of risk. Everland Investment JSC is currently generating about 0.21 per unit of risk. If you would invest  6,200,000  in Vinhomes JSC on May 7, 2025 and sell it today you would earn a total of  3,020,000  from holding Vinhomes JSC or generate 48.71% return on investment over 90 days.

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

Vinhomes JSC  vs.  Everland Investment JSC

Vinhomes JSC

Risk-Adjusted Performance

Solid

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

Everland Investment JSC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everland Investment JSC are ranked lower than 16 (%) 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.

Pair Trading with Vinhomes JSC and Everland Investment

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

The idea behind Vinhomes JSC and Everland Investment 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.