Correlation Between An Phat and Binh Minh
Can any of the company-specific risk be diversified away by investing in both An Phat and Binh Minh 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 Binh Minh 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 Binh Minh Plastics, you can compare the effects of market volatilities on An Phat and Binh Minh 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 Binh Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Binh Minh.
Diversification Opportunities for An Phat and Binh Minh
Very weak diversification
The 3 months correlation between AAA and Binh is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Binh Minh Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Minh Plastics 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 Binh Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Minh Plastics has no effect on the direction of An Phat i.e., An Phat and Binh Minh go up and down completely randomly.
Pair Corralation between An Phat and Binh Minh
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.46 times more return on investment than Binh Minh. However, An Phat Plastic is 2.2 times less risky than Binh Minh. It trades about -0.31 of its potential returns per unit of risk. Binh Minh Plastics is currently generating about -0.15 per unit of risk. If you would invest 874,000 in An Phat Plastic on November 2, 2024 and sell it today you would lose (38,000) from holding An Phat Plastic or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Binh Minh Plastics
Performance |
| Timeline |
| An Phat Plastic |
| Binh Minh Plastics |
An Phat and Binh Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Binh Minh
The main advantage of trading using opposite An Phat and Binh Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Binh Minh 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 Binh Minh will offset losses from the drop in Binh Minh's long position.| An Phat vs. Pha Le Plastics | An Phat vs. DOMESCO Medical Import | An Phat vs. Nafoods Group JSC | An Phat vs. Vietnam Rubber Group |
| Binh Minh vs. Saigon Beer Alcohol | Binh Minh vs. Cotec Construction JSC | Binh Minh vs. Petrovietnam Drilling Mud | Binh Minh vs. Hung Hau Agricultural |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance |