Correlation Between An Phat and Vnsteel Vicasa
Can any of the company-specific risk be diversified away by investing in both An Phat and Vnsteel Vicasa 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 Vnsteel Vicasa 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 Vnsteel Vicasa JSC, you can compare the effects of market volatilities on An Phat and Vnsteel Vicasa 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 Vnsteel Vicasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Vnsteel Vicasa.
Diversification Opportunities for An Phat and Vnsteel Vicasa
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between AAA and Vnsteel is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Vnsteel Vicasa JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vnsteel Vicasa 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 Vnsteel Vicasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vnsteel Vicasa JSC has no effect on the direction of An Phat i.e., An Phat and Vnsteel Vicasa go up and down completely randomly.
Pair Corralation between An Phat and Vnsteel Vicasa
Assuming the 90 days trading horizon An Phat is expected to generate 39.18 times less return on investment than Vnsteel Vicasa. But when comparing it to its historical volatility, An Phat Plastic is 3.07 times less risky than Vnsteel Vicasa. It trades about 0.12 of its potential returns per unit of risk. Vnsteel Vicasa JSC is currently generating about 1.53 of returns per unit of risk over similar time horizon. If you would invest 860,000 in Vnsteel Vicasa JSC on September 12, 2024 and sell it today you would earn a total of 785,000 from holding Vnsteel Vicasa JSC or generate 91.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.52% |
| Values | Daily Returns |
An Phat Plastic vs. Vnsteel Vicasa JSC
Performance |
| Timeline |
| An Phat Plastic |
| Vnsteel Vicasa JSC |
An Phat and Vnsteel Vicasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Vnsteel Vicasa
The main advantage of trading using opposite An Phat and Vnsteel Vicasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Vnsteel Vicasa 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 Vnsteel Vicasa will offset losses from the drop in Vnsteel Vicasa's long position.| An Phat vs. Binh Duong Construction | An Phat vs. Century Synthetic Fiber | An Phat vs. Dong A Hotel | An Phat vs. 1369 Construction JSC |
| Vnsteel Vicasa vs. FIT INVEST JSC | Vnsteel Vicasa vs. Damsan JSC | Vnsteel Vicasa vs. An Phat Plastic | Vnsteel Vicasa vs. Alphanam ME |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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