Correlation Between Mekong Fisheries and POT
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries 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 Mekong Fisheries and POT 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 PostTelecommunication Equipment, you can compare the effects of market volatilities on Mekong Fisheries 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 Mekong Fisheries with a short position of POT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and POT.
Diversification Opportunities for Mekong Fisheries and POT
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekong and POT is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and PostTelecommunication Equipmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostTelecommunication 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 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 Mekong Fisheries i.e., Mekong Fisheries and POT go up and down completely randomly.
Pair Corralation between Mekong Fisheries and POT
Assuming the 90 days trading horizon Mekong Fisheries is expected to generate 3.18 times less return on investment than POT. But when comparing it to its historical volatility, Mekong Fisheries JSC is 1.46 times less risky than POT. It trades about 0.07 of its potential returns per unit of risk. PostTelecommunication Equipment is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,500,000 in PostTelecommunication Equipment on November 2, 2024 and sell it today you would earn a total of 70,000 from holding PostTelecommunication Equipment or generate 4.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 58.82% |
Values | Daily Returns |
Mekong Fisheries JSC vs. PostTelecommunication Equipmen
Performance |
Timeline |
Mekong Fisheries JSC |
PostTelecommunication |
Mekong Fisheries and POT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mekong Fisheries and POT
The main advantage of trading using opposite Mekong Fisheries and POT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries 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.Mekong Fisheries vs. Vu Dang Investment | Mekong Fisheries vs. Asia Pacific Investment | Mekong Fisheries vs. Everland Investment JSC | Mekong Fisheries vs. VietinBank Securities JSC |
POT vs. Vien Dong Investment | POT vs. HUD1 Investment and | POT vs. HVC Investment and | POT vs. TDT Investment and |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |