Correlation Between An Phat and Phat Dat
Can any of the company-specific risk be diversified away by investing in both An Phat and Phat Dat 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 Phat Dat 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 Phat Dat Real, you can compare the effects of market volatilities on An Phat and Phat Dat 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 Phat Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Phat Dat.
Diversification Opportunities for An Phat and Phat Dat
Very weak diversification
The 3 months correlation between AAA and Phat is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Phat Dat Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phat Dat Real 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 Phat Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phat Dat Real has no effect on the direction of An Phat i.e., An Phat and Phat Dat go up and down completely randomly.
Pair Corralation between An Phat and Phat Dat
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.85 times more return on investment than Phat Dat. However, An Phat Plastic is 1.18 times less risky than Phat Dat. It trades about -0.02 of its potential returns per unit of risk. Phat Dat Real is currently generating about -0.03 per unit of risk. If you would invest 958,000 in An Phat Plastic on September 3, 2024 and sell it today you would lose (108,000) from holding An Phat Plastic or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Phat Dat Real
Performance |
| Timeline |
| An Phat Plastic |
| Phat Dat Real |
An Phat and Phat Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Phat Dat
The main advantage of trading using opposite An Phat and Phat Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Phat Dat 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 Phat Dat will offset losses from the drop in Phat Dat's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat vs. APG Securities Joint |
| Phat Dat vs. POST TELECOMMU | Phat Dat vs. Ha Noi Education | Phat Dat vs. Hochiminh City Metal | Phat Dat vs. Dong A Hotel |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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