Correlation Between Alphanam and Vinacomin Power
Can any of the company-specific risk be diversified away by investing in both Alphanam and Vinacomin Power 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 Vinacomin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Vinacomin Power Holding, you can compare the effects of market volatilities on Alphanam and Vinacomin Power 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 Vinacomin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Vinacomin Power.
Diversification Opportunities for Alphanam and Vinacomin Power
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alphanam and Vinacomin is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Vinacomin Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinacomin Power Holding 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 Vinacomin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinacomin Power Holding has no effect on the direction of Alphanam i.e., Alphanam and Vinacomin Power go up and down completely randomly.
Pair Corralation between Alphanam and Vinacomin Power
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Vinacomin Power. In addition to that, Alphanam is 1.03 times more volatile than Vinacomin Power Holding. It trades about -0.19 of its total potential returns per unit of risk. Vinacomin Power Holding is currently generating about -0.04 per unit of volatility. If you would invest 1,280,000 in Vinacomin Power Holding on September 12, 2024 and sell it today you would lose (90,000) from holding Vinacomin Power Holding or give up 7.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.75% |
| Values | Daily Returns |
Alphanam ME vs. Vinacomin Power Holding
Performance |
| Timeline |
| Alphanam ME |
| Vinacomin Power Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alphanam and Vinacomin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Vinacomin Power
The main advantage of trading using opposite Alphanam and Vinacomin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Vinacomin Power 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 Vinacomin Power will offset losses from the drop in Vinacomin Power's long position.| Alphanam vs. An Phat Plastic | Alphanam vs. Vietnam Rubber Group | Alphanam vs. Petrovietnam Drilling Mud | Alphanam vs. Transport and Industry |
| Vinacomin Power vs. Post and Telecommunications | Vinacomin Power vs. Elcom Technology Communications | Vinacomin Power vs. Petrolimex Information Technology | Vinacomin Power vs. Global Electrical Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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