Correlation Between An Phat and Transport
Can any of the company-specific risk be diversified away by investing in both An Phat and Transport 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 Transport 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 Transport and Industry, you can compare the effects of market volatilities on An Phat and Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Transport.
Diversification Opportunities for An Phat and Transport
Very weak diversification
The 3 months correlation between AAA and Transport is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Industry 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of An Phat i.e., An Phat and Transport go up and down completely randomly.
Pair Corralation between An Phat and Transport
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.97 times more return on investment than Transport. However, An Phat Plastic is 1.03 times less risky than Transport. It trades about -0.31 of its potential returns per unit of risk. Transport and Industry is currently generating about -0.5 per unit of risk. If you would invest 873,000 in An Phat Plastic on November 4, 2024 and sell it today you would lose (37,000) from holding An Phat Plastic or give up 4.24% 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. Transport and Industry
Performance |
| Timeline |
| An Phat Plastic |
| Transport and Industry |
An Phat and Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Transport
The main advantage of trading using opposite An Phat and Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Transport 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 Transport will offset losses from the drop in Transport's long position.| An Phat vs. Saigon Beer Alcohol | An Phat vs. Vietnam Rubber Group | An Phat vs. Saigon Viendong Technology | An Phat vs. Hanoi Plastics JSC |
| Transport vs. Everland Investment JSC | Transport vs. TDT Investment and | Transport vs. PV2 Investment JSC | Transport vs. Asia Pacific 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |