Correlation Between Alphanam and Duc Thanh
Can any of the company-specific risk be diversified away by investing in both Alphanam and Duc Thanh 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 Duc Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Duc Thanh Wood, you can compare the effects of market volatilities on Alphanam and Duc Thanh 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 Duc Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Duc Thanh.
Diversification Opportunities for Alphanam and Duc Thanh
Very weak diversification
The 3 months correlation between Alphanam and Duc is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Duc Thanh Wood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duc Thanh Wood 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 Duc Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duc Thanh Wood has no effect on the direction of Alphanam i.e., Alphanam and Duc Thanh go up and down completely randomly.
Pair Corralation between Alphanam and Duc Thanh
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Duc Thanh. In addition to that, Alphanam is 1.9 times more volatile than Duc Thanh Wood. It trades about -0.07 of its total potential returns per unit of risk. Duc Thanh Wood is currently generating about 0.2 per unit of volatility. If you would invest 2,509,091 in Duc Thanh Wood on August 25, 2024 and sell it today you would earn a total of 115,909 from holding Duc Thanh Wood or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Alphanam ME vs. Duc Thanh Wood
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Duc Thanh Wood |
Alphanam and Duc Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Duc Thanh
The main advantage of trading using opposite Alphanam and Duc Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Duc Thanh 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 Duc Thanh will offset losses from the drop in Duc Thanh's long position.| Alphanam vs. Transport and Industry | Alphanam vs. Petrolimex Information Technology | Alphanam vs. PVI Reinsurance Corp | Alphanam vs. Japan Vietnam Medical |
| Duc Thanh vs. FIT INVEST JSC | Duc Thanh vs. Damsan JSC | Duc Thanh vs. An Phat Plastic | Duc Thanh 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |