Correlation Between Mekong Fisheries and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Hanoi Beer 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 Mekong Fisheries and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekong Fisheries JSC and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Mekong Fisheries and Hanoi Beer 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 Mekong Fisheries with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Hanoi Beer.
Diversification Opportunities for Mekong Fisheries and Hanoi Beer
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekong and Hanoi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Mekong Fisheries 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 Mekong Fisheries JSC are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Hanoi Beer go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Hanoi Beer
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to generate 1.35 times more return on investment than Hanoi Beer. However, Mekong Fisheries is 1.35 times more volatile than Hanoi Beer Alcohol. It trades about 0.03 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.03 per unit of risk. If you would invest 690,000 in Mekong Fisheries JSC on October 26, 2024 and sell it today you would earn a total of 17,000 from holding Mekong Fisheries JSC or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.57% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Hanoi Beer Alcohol |
Mekong Fisheries and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Hanoi Beer
The main advantage of trading using opposite Mekong Fisheries and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Mekong Fisheries vs. Saigon Telecommunication Technologies | Mekong Fisheries vs. VTC Telecommunications JSC | Mekong Fisheries vs. Techcom Vietnam REIT | Mekong Fisheries vs. Techno Agricultural Supplying |
| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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