Correlation Between An Phat and Alphanam
Can any of the company-specific risk be diversified away by investing in both An Phat and Alphanam 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 Alphanam 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 Alphanam ME, you can compare the effects of market volatilities on An Phat and Alphanam 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 Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Alphanam.
Diversification Opportunities for An Phat and Alphanam
Very poor diversification
The 3 months correlation between AAA and Alphanam is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME 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 Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of An Phat i.e., An Phat and Alphanam go up and down completely randomly.
Pair Corralation between An Phat and Alphanam
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 1.08 times more return on investment than Alphanam. However, An Phat is 1.08 times more volatile than Alphanam ME. It trades about -0.21 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.34 per unit of risk. If you would invest 912,000 in An Phat Plastic on August 24, 2024 and sell it today you would lose (72,000) from holding An Phat Plastic or give up 7.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 50.0% |
| Values | Daily Returns |
An Phat Plastic vs. Alphanam ME
Performance |
| Timeline |
| An Phat Plastic |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
An Phat and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Alphanam
The main advantage of trading using opposite An Phat and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
| Alphanam vs. Vu Dang Investment | Alphanam vs. Binhthuan Agriculture Services | Alphanam vs. Danang Education Investment | Alphanam vs. DIC Holdings Construction |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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