Correlation Between VIETNAM ENTERPRISE and ResMed

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

By analyzing existing cross correlation between VIETNAM ENTERPRISE INV and ResMed Inc, you can compare the effects of market volatilities on VIETNAM ENTERPRISE and ResMed 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 VIETNAM ENTERPRISE with a short position of ResMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIETNAM ENTERPRISE and ResMed.

Diversification Opportunities for VIETNAM ENTERPRISE and ResMed

0.58

Correlation Coefficient

VIETNAM ENTERPRISE  ResMed

Very weak diversification

The 3 months correlation between VIETNAM and ResMed is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding VIETNAM ENTERPRISE INV and ResMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ResMed Inc and VIETNAM ENTERPRISE 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 VIETNAM ENTERPRISE INV are associated (or correlated) with ResMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ResMed Inc has no effect on the direction of VIETNAM ENTERPRISE i.e., VIETNAM ENTERPRISE and ResMed go up and down completely randomly.

Pair Corralation between VIETNAM ENTERPRISE and ResMed

Assuming the 90 days horizon VIETNAM ENTERPRISE INV is expected to generate 1.04 times more return on investment than ResMed. However, VIETNAM ENTERPRISE is 1.04 times more volatile than ResMed Inc. It trades about 0.29 of its potential returns per unit of risk. ResMed Inc is currently generating about 0.2 per unit of risk. If you would invest  575.00  in VIETNAM ENTERPRISE INV on April 20, 2025 and sell it today you would earn a total of  185.00  from holding VIETNAM ENTERPRISE INV or generate 32.17% return on investment over 90 days.

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

VIETNAM ENTERPRISE INV  vs.  ResMed Inc

VIETNAM ENTERPRISE INV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VIETNAM ENTERPRISE INV are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, VIETNAM ENTERPRISE reported solid returns over the last few months and may actually be approaching a breakup point.

ResMed Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ResMed Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ResMed reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with VIETNAM ENTERPRISE and ResMed

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

The idea behind VIETNAM ENTERPRISE INV and ResMed Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.