Correlation Between An Phat and POT
Can any of the company-specific risk be diversified away by investing in both An Phat and POT 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 POT 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 PostTelecommunication Equipment, you can compare the effects of market volatilities on An Phat and POT 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 POT. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and POT.
Diversification Opportunities for An Phat and POT
Poor diversification
The 3 months correlation between AAA and POT is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and PostTelecommunication Equipmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostTelecommunication 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 POT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostTelecommunication has no effect on the direction of An Phat i.e., An Phat and POT go up and down completely randomly.
Pair Corralation between An Phat and POT
Assuming the 90 days trading horizon An Phat is expected to generate 6.13 times less return on investment than POT. But when comparing it to its historical volatility, An Phat Plastic is 2.12 times less risky than POT. It trades about 0.0 of its potential returns per unit of risk. PostTelecommunication Equipment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,740,789 in PostTelecommunication Equipment on September 14, 2024 and sell it today you would lose (150,789) from holding PostTelecommunication Equipment or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 64.63% |
| Values | Daily Returns |
An Phat Plastic vs. PostTelecommunication Equipmen
Performance |
| Timeline |
| An Phat Plastic |
| PostTelecommunication |
An Phat and POT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and POT
The main advantage of trading using opposite An Phat and POT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, POT 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 POT will offset losses from the drop in POT's long position.| An Phat vs. LDG Investment JSC | An Phat vs. Vina2 Investment and | An Phat vs. Ducgiang Chemicals Detergent | An Phat vs. Song Hong Aluminum |
| POT vs. Vinhomes JSC | POT vs. TDG Global Investment | POT vs. Din Capital Investment | POT vs. Thanh Dat Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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