Correlation Between An Phat and Vietnam JSCmmercial
Can any of the company-specific risk be diversified away by investing in both An Phat and Vietnam JSCmmercial 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 Vietnam JSCmmercial 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 Vietnam JSCmmercial Bank, you can compare the effects of market volatilities on An Phat and Vietnam JSCmmercial 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 Vietnam JSCmmercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Vietnam JSCmmercial.
Diversification Opportunities for An Phat and Vietnam JSCmmercial
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AAA and Vietnam is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Vietnam JSCmmercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam JSCmmercial Bank 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 Vietnam JSCmmercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam JSCmmercial Bank has no effect on the direction of An Phat i.e., An Phat and Vietnam JSCmmercial go up and down completely randomly.
Pair Corralation between An Phat and Vietnam JSCmmercial
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Vietnam JSCmmercial. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 1.34 times less risky than Vietnam JSCmmercial. The stock trades about -0.31 of its potential returns per unit of risk. The Vietnam JSCmmercial Bank is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,810,000 in Vietnam JSCmmercial Bank on November 3, 2024 and sell it today you would lose (10,000) from holding Vietnam JSCmmercial Bank or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Vietnam JSCmmercial Bank
Performance |
| Timeline |
| An Phat Plastic |
| Vietnam JSCmmercial Bank |
An Phat and Vietnam JSCmmercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Vietnam JSCmmercial
The main advantage of trading using opposite An Phat and Vietnam JSCmmercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Vietnam JSCmmercial 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 Vietnam JSCmmercial will offset losses from the drop in Vietnam JSCmmercial's long position.| An Phat vs. Cotec Construction JSC | An Phat vs. Techno Agricultural Supplying | An Phat vs. Binhthuan Agriculture Services | An Phat vs. Ducgiang Chemicals Detergent |
| Vietnam JSCmmercial vs. FIT INVEST JSC | Vietnam JSCmmercial vs. Damsan JSC | Vietnam JSCmmercial vs. An Phat Plastic | Vietnam JSCmmercial 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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