Correlation Between An Phat and Vina2 Investment
Can any of the company-specific risk be diversified away by investing in both An Phat and Vina2 Investment 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 Vina2 Investment 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 Vina2 Investment and, you can compare the effects of market volatilities on An Phat and Vina2 Investment 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 Vina2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Vina2 Investment.
Diversification Opportunities for An Phat and Vina2 Investment
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AAA and Vina2 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Vina2 Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina2 Investment 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 Vina2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina2 Investment has no effect on the direction of An Phat i.e., An Phat and Vina2 Investment go up and down completely randomly.
Pair Corralation between An Phat and Vina2 Investment
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.66 times more return on investment than Vina2 Investment. However, An Phat Plastic is 1.51 times less risky than Vina2 Investment. It trades about 0.03 of its potential returns per unit of risk. Vina2 Investment and is currently generating about 0.01 per unit of risk. If you would invest 736,000 in An Phat Plastic on August 29, 2024 and sell it today you would earn a total of 120,000 from holding An Phat Plastic or generate 16.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Vina2 Investment and
Performance |
| Timeline |
| An Phat Plastic |
| Vina2 Investment |
An Phat and Vina2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Vina2 Investment
The main advantage of trading using opposite An Phat and Vina2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Vina2 Investment 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 Vina2 Investment will offset losses from the drop in Vina2 Investment'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 |
| Vina2 Investment vs. FIT INVEST JSC | Vina2 Investment vs. Damsan JSC | Vina2 Investment vs. An Phat Plastic | Vina2 Investment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |