Correlation Between An Phat and Industrial Urban
Can any of the company-specific risk be diversified away by investing in both An Phat and Industrial Urban 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 Industrial Urban 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 Industrial Urban Development, you can compare the effects of market volatilities on An Phat and Industrial Urban 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 Industrial Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Industrial Urban.
Diversification Opportunities for An Phat and Industrial Urban
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAA and Industrial is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Industrial Urban Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Urban Dev 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 Industrial Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Urban Dev has no effect on the direction of An Phat i.e., An Phat and Industrial Urban go up and down completely randomly.
Pair Corralation between An Phat and Industrial Urban
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Industrial Urban. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 2.67 times less risky than Industrial Urban. The stock trades about -0.28 of its potential returns per unit of risk. The Industrial Urban Development is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,160,000 in Industrial Urban Development on October 29, 2024 and sell it today you would earn a total of 300,000 from holding Industrial Urban Development or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Industrial Urban Development
Performance |
| Timeline |
| An Phat Plastic |
| Industrial Urban Dev |
An Phat and Industrial Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Industrial Urban
The main advantage of trading using opposite An Phat and Industrial Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Industrial Urban 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 Industrial Urban will offset losses from the drop in Industrial Urban'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 |
| Industrial Urban vs. FIT INVEST JSC | Industrial Urban vs. Damsan JSC | Industrial Urban vs. An Phat Plastic | Industrial Urban 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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