Correlation Between Alphanam and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Alphanam 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 Alphanam and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Hanoi Beer Trading, you can compare the effects of market volatilities on Alphanam 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 Alphanam with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Hanoi Beer.
Diversification Opportunities for Alphanam and Hanoi Beer
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alphanam and Hanoi is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Hanoi Beer Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Trading 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 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 Trading has no effect on the direction of Alphanam i.e., Alphanam and Hanoi Beer go up and down completely randomly.
Pair Corralation between Alphanam and Hanoi Beer
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Hanoi Beer. In addition to that, Alphanam is 1.69 times more volatile than Hanoi Beer Trading. It trades about -0.18 of its total potential returns per unit of risk. Hanoi Beer Trading is currently generating about 0.05 per unit of volatility. If you would invest 4,210,000 in Hanoi Beer Trading on September 15, 2024 and sell it today you would earn a total of 40,000 from holding Hanoi Beer Trading or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.57% |
| Values | Daily Returns |
Alphanam ME vs. Hanoi Beer Trading
Performance |
| Timeline |
| Alphanam ME |
| Hanoi Beer Trading |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alphanam and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Hanoi Beer
The main advantage of trading using opposite Alphanam and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam 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.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| Hanoi Beer vs. Song Hong Garment | Hanoi Beer vs. Alphanam ME | Hanoi Beer vs. Hochiminh City Metal | Hanoi Beer vs. Atesco Industrial Cartering |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |