Correlation Between An Phat and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both An Phat and Mekong Fisheries 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 An Phat and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and Mekong Fisheries JSC, you can compare the effects of market volatilities on An Phat and Mekong Fisheries 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 An Phat with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Mekong Fisheries.
Diversification Opportunities for An Phat and Mekong Fisheries
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AAA and Mekong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and An Phat 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 An Phat Plastic are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of An Phat i.e., An Phat and Mekong Fisheries go up and down completely randomly.
Pair Corralation between An Phat and Mekong Fisheries
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Mekong Fisheries. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 3.07 times less risky than Mekong Fisheries. The stock trades about -0.31 of its potential returns per unit of risk. The Mekong Fisheries JSC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 691,000 in Mekong Fisheries JSC on November 2, 2024 and sell it today you would earn a total of 16,000 from holding Mekong Fisheries JSC or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
An Phat Plastic vs. Mekong Fisheries JSC
Performance |
| Timeline |
| An Phat Plastic |
| Mekong Fisheries JSC |
An Phat and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Mekong Fisheries
The main advantage of trading using opposite An Phat and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.| An Phat vs. Pha Le Plastics | An Phat vs. DOMESCO Medical Import | An Phat vs. Nafoods Group JSC | An Phat vs. Vietnam Rubber Group |
| Mekong Fisheries vs. Vu Dang Investment | Mekong Fisheries vs. Asia Pacific Investment | Mekong Fisheries vs. Everland Investment JSC | Mekong Fisheries vs. VietinBank Securities JSC |
Check out your portfolio center.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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