Correlation Between An Phat and Taseco Air
Can any of the company-specific risk be diversified away by investing in both An Phat and Taseco Air 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 Taseco Air 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 Taseco Air Services, you can compare the effects of market volatilities on An Phat and Taseco Air 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 Taseco Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Taseco Air.
Diversification Opportunities for An Phat and Taseco Air
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AAA and Taseco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Taseco Air Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseco Air Services 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 Taseco Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseco Air Services has no effect on the direction of An Phat i.e., An Phat and Taseco Air go up and down completely randomly.
Pair Corralation between An Phat and Taseco Air
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Taseco Air. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 1.13 times less risky than Taseco Air. The stock trades about -0.28 of its potential returns per unit of risk. The Taseco Air Services is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 5,540,000 in Taseco Air Services on October 29, 2024 and sell it today you would lose (190,000) from holding Taseco Air Services or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Taseco Air Services
Performance |
| Timeline |
| An Phat Plastic |
| Taseco Air Services |
An Phat and Taseco Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Taseco Air
The main advantage of trading using opposite An Phat and Taseco Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Taseco Air 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 Taseco Air will offset losses from the drop in Taseco Air's long position.| An Phat vs. Tin Nghia Industrial | An Phat vs. Post and Telecommunications | An Phat vs. Hochiminh City Metal | An Phat vs. Long An Food |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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