Correlation Between An Phat and Nafoods Group
Can any of the company-specific risk be diversified away by investing in both An Phat and Nafoods Group 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 Nafoods Group 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 Nafoods Group JSC, you can compare the effects of market volatilities on An Phat and Nafoods Group 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 Nafoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Nafoods Group.
Diversification Opportunities for An Phat and Nafoods Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAA and Nafoods is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Nafoods Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafoods Group JSC 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 Nafoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafoods Group JSC has no effect on the direction of An Phat i.e., An Phat and Nafoods Group go up and down completely randomly.
Pair Corralation between An Phat and Nafoods Group
Assuming the 90 days trading horizon An Phat is expected to generate 5.85 times less return on investment than Nafoods Group. In addition to that, An Phat is 1.04 times more volatile than Nafoods Group JSC. It trades about 0.02 of its total potential returns per unit of risk. Nafoods Group JSC is currently generating about 0.09 per unit of volatility. If you would invest 836,364 in Nafoods Group JSC on August 26, 2024 and sell it today you would earn a total of 1,103,636 from holding Nafoods Group JSC or generate 131.96% 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. Nafoods Group JSC
Performance |
| Timeline |
| An Phat Plastic |
| Nafoods Group JSC |
An Phat and Nafoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Nafoods Group
The main advantage of trading using opposite An Phat and Nafoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Nafoods Group 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 Nafoods Group will offset losses from the drop in Nafoods Group's long position.| An Phat vs. South Basic Chemicals | An Phat vs. Saigon Beer Alcohol | An Phat vs. Vietnam Petroleum Transport | An Phat vs. Fecon Mining JSC |
| Nafoods Group vs. FIT INVEST JSC | Nafoods Group vs. Damsan JSC | Nafoods Group vs. An Phat Plastic | Nafoods Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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