Correlation Between An Phat and Travel Investment
Can any of the company-specific risk be diversified away by investing in both An Phat and Travel 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 Travel 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 Travel Investment and, you can compare the effects of market volatilities on An Phat and Travel 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 Travel Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Travel Investment.
Diversification Opportunities for An Phat and Travel Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAA and Travel is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Travel Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Travel Investment 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 Travel Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Travel Investment has no effect on the direction of An Phat i.e., An Phat and Travel Investment go up and down completely randomly.
Pair Corralation between An Phat and Travel Investment
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Travel Investment. In addition to that, An Phat is 1.1 times more volatile than Travel Investment and. It trades about -0.09 of its total potential returns per unit of risk. Travel Investment and is currently generating about 0.04 per unit of volatility. If you would invest 740,000 in Travel Investment and on September 1, 2024 and sell it today you would earn a total of 5,000 from holding Travel Investment and or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.55% |
| Values | Daily Returns |
An Phat Plastic vs. Travel Investment and
Performance |
| Timeline |
| An Phat Plastic |
| Travel Investment |
An Phat and Travel Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Travel Investment
The main advantage of trading using opposite An Phat and Travel Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Travel 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 Travel Investment will offset losses from the drop in Travel Investment's long position.| An Phat vs. Ha Long Investment | An Phat vs. Dong Nai Plastic | An Phat vs. Tien Phong Plastic | An Phat vs. RangDong Plastic JSC |
| Travel Investment vs. FIT INVEST JSC | Travel Investment vs. Damsan JSC | Travel Investment vs. An Phat Plastic | Travel Investment vs. Alphanam ME |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |