Correlation Between An Phat and Foreign Trade
Can any of the company-specific risk be diversified away by investing in both An Phat and Foreign Trade 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 Foreign Trade 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 Foreign Trade Development, you can compare the effects of market volatilities on An Phat and Foreign Trade 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 Foreign Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Foreign Trade.
Diversification Opportunities for An Phat and Foreign Trade
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAA and Foreign is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Foreign Trade Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Trade Development 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 Foreign Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Trade Development has no effect on the direction of An Phat i.e., An Phat and Foreign Trade go up and down completely randomly.
Pair Corralation between An Phat and Foreign Trade
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.51 times more return on investment than Foreign Trade. However, An Phat Plastic is 1.98 times less risky than Foreign Trade. It trades about 0.02 of its potential returns per unit of risk. Foreign Trade Development is currently generating about 0.01 per unit of risk. If you would invest 799,000 in An Phat Plastic on August 24, 2024 and sell it today you would earn a total of 37,000 from holding An Phat Plastic or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.77% |
| Values | Daily Returns |
An Phat Plastic vs. Foreign Trade Development
Performance |
| Timeline |
| An Phat Plastic |
| Foreign Trade Development |
An Phat and Foreign Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Foreign Trade
The main advantage of trading using opposite An Phat and Foreign Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Foreign Trade 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 Foreign Trade will offset losses from the drop in Foreign Trade's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
| Foreign Trade vs. FIT INVEST JSC | Foreign Trade vs. Damsan JSC | Foreign Trade vs. An Phat Plastic | Foreign Trade 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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