Correlation Between An Phat and ASG Corp
Can any of the company-specific risk be diversified away by investing in both An Phat and ASG Corp 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 ASG Corp 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 ASG Corp, you can compare the effects of market volatilities on An Phat and ASG Corp 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 ASG Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and ASG Corp.
Diversification Opportunities for An Phat and ASG Corp
Poor diversification
The 3 months correlation between AAA and ASG is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and ASG Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASG Corp 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 ASG Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASG Corp has no effect on the direction of An Phat i.e., An Phat and ASG Corp go up and down completely randomly.
Pair Corralation between An Phat and ASG Corp
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 1.38 times more return on investment than ASG Corp. However, An Phat is 1.38 times more volatile than ASG Corp. It trades about -0.01 of its potential returns per unit of risk. ASG Corp is currently generating about -0.05 per unit of risk. If you would invest 907,000 in An Phat Plastic on August 27, 2024 and sell it today you would lose (71,000) from holding An Phat Plastic or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.39% |
| Values | Daily Returns |
An Phat Plastic vs. ASG Corp
Performance |
| Timeline |
| An Phat Plastic |
| ASG Corp |
An Phat and ASG Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and ASG Corp
The main advantage of trading using opposite An Phat and ASG Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, ASG Corp 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 ASG Corp will offset losses from the drop in ASG Corp's long position.| An Phat vs. Din Capital Investment | An Phat vs. Sao Ta Foods | An Phat vs. Hai An Transport | An Phat vs. 577 Investment Corp |
| ASG Corp vs. Vietnam Airlines JSC | ASG Corp vs. Post and Telecommunications | ASG Corp vs. Elcom Technology Communications | ASG Corp vs. Military Insurance Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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