Correlation Between An Phat and Cuulong Fish
Can any of the company-specific risk be diversified away by investing in both An Phat and Cuulong Fish 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 Cuulong Fish 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 Cuulong Fish JSC, you can compare the effects of market volatilities on An Phat and Cuulong Fish 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 Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Cuulong Fish.
Diversification Opportunities for An Phat and Cuulong Fish
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAA and Cuulong is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish 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 Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of An Phat i.e., An Phat and Cuulong Fish go up and down completely randomly.
Pair Corralation between An Phat and Cuulong Fish
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 1.13 times more return on investment than Cuulong Fish. However, An Phat is 1.13 times more volatile than Cuulong Fish JSC. It trades about 0.02 of its potential returns per unit of risk. Cuulong Fish JSC is currently generating about 0.02 per unit of risk. If you would invest 736,000 in An Phat Plastic on August 29, 2024 and sell it today you would earn a total of 114,000 from holding An Phat Plastic or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Cuulong Fish JSC
Performance |
| Timeline |
| An Phat Plastic |
| Cuulong Fish JSC |
An Phat and Cuulong Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Cuulong Fish
The main advantage of trading using opposite An Phat and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat vs. APG Securities Joint |
| Cuulong Fish vs. FIT INVEST JSC | Cuulong Fish vs. Damsan JSC | Cuulong Fish vs. An Phat Plastic | Cuulong Fish vs. Alphanam ME |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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