Correlation Between Viet Thanh and Kien Giang

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

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

Diversification Opportunities for Viet Thanh and Kien Giang

0.29

Correlation Coefficient

Viet Thanh  Kien Giang

Modest diversification

The 3 months correlation between Viet and Kien is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Viet Thanh Plastic and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Viet Thanh 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 Viet Thanh Plastic are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Viet Thanh i.e., Viet Thanh and Kien Giang go up and down completely randomly.

Pair Corralation between Viet Thanh and Kien Giang

Assuming the 90 days trading horizon Viet Thanh is expected to generate 1.03 times less return on investment than Kien Giang. But when comparing it to its historical volatility, Viet Thanh Plastic is 1.93 times less risky than Kien Giang. It trades about 0.12 of its potential returns per unit of risk. Kien Giang Construction is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,365,000  in Kien Giang Construction on May 7, 2025 and sell it today you would earn a total of  115,000  from holding Kien Giang Construction or generate 8.42% return on investment over 90 days.

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

Viet Thanh Plastic  vs.  Kien Giang Construction

Viet Thanh Plastic

Risk-Adjusted Performance

Fair

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

Kien Giang Construction

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Kien Giang Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Kien Giang may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Viet Thanh and Kien Giang

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

The idea behind Viet Thanh Plastic and Kien Giang Construction 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.