Correlation Between Alphanam and Travel Investment
Can any of the company-specific risk be diversified away by investing in both Alphanam and Travel 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 Alphanam and Travel Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Travel Investment and, you can compare the effects of market volatilities on Alphanam and Travel 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 Alphanam with a short position of Travel Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Travel Investment.
Diversification Opportunities for Alphanam and Travel Investment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alphanam and Travel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Travel Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Travel Investment and Alphanam 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 Alphanam ME are associated (or correlated) with Travel Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Travel Investment has no effect on the direction of Alphanam i.e., Alphanam and Travel Investment go up and down completely randomly.
Pair Corralation between Alphanam and Travel Investment
Assuming the 90 days trading horizon Alphanam ME is expected to generate 0.7 times more return on investment than Travel Investment. However, Alphanam ME is 1.43 times less risky than Travel Investment. It trades about -0.08 of its potential returns per unit of risk. Travel Investment and is currently generating about -0.09 per unit of risk. If you would invest 1,070,000 in Alphanam ME on September 1, 2024 and sell it today you would lose (590,000) from holding Alphanam ME or give up 55.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.44% |
| Values | Daily Returns |
Alphanam ME vs. Travel Investment and
Performance |
| Timeline |
| Alphanam ME |
| Travel Investment |
Alphanam and Travel Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Travel Investment
The main advantage of trading using opposite Alphanam and Travel Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Travel 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 Travel Investment will offset losses from the drop in Travel Investment's long position.| Alphanam vs. Hanoi Plastics JSC | Alphanam vs. Everland Investment JSC | Alphanam vs. Thanh Dat Investment | Alphanam vs. Vietnam Rubber Group |
| Travel Investment vs. FIT INVEST JSC | Travel Investment vs. Damsan JSC | Travel Investment vs. An Phat Plastic | Travel Investment 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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