Correlation Between An Phat and Investment
Can any of the company-specific risk be diversified away by investing in both An Phat and Investment 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 Investment 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 Investment and Industrial, you can compare the effects of market volatilities on An Phat and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Investment.
Diversification Opportunities for An Phat and Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AAA and Investment is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Investment and Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Industrial 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment and Industrial has no effect on the direction of An Phat i.e., An Phat and Investment go up and down completely randomly.
Pair Corralation between An Phat and Investment
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Investment. In addition to that, An Phat is 1.1 times more volatile than Investment and Industrial. It trades about -0.19 of its total potential returns per unit of risk. Investment and Industrial is currently generating about 0.01 per unit of volatility. If you would invest 6,580,000 in Investment and Industrial on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Investment and Industrial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Investment and Industrial
Performance |
| Timeline |
| An Phat Plastic |
| Investment and Industrial |
An Phat and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Investment
The main advantage of trading using opposite An Phat and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| An Phat vs. South Basic Chemicals | An Phat vs. Saigon Beer Alcohol | An Phat vs. Vietnam Petroleum Transport | An Phat vs. Fecon Mining JSC |
| Investment vs. FIT INVEST JSC | Investment vs. Damsan JSC | Investment vs. An Phat Plastic | Investment vs. APG Securities Joint |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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