Correlation Between Alphanam and Hoasen
Can any of the company-specific risk be diversified away by investing in both Alphanam and Hoasen 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 Hoasen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Hoasen Group, you can compare the effects of market volatilities on Alphanam and Hoasen 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 Hoasen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Hoasen.
Diversification Opportunities for Alphanam and Hoasen
Very weak diversification
The 3 months correlation between Alphanam and Hoasen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Hoasen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoasen Group 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 Hoasen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoasen Group has no effect on the direction of Alphanam i.e., Alphanam and Hoasen go up and down completely randomly.
Pair Corralation between Alphanam and Hoasen
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Hoasen. In addition to that, Alphanam is 1.14 times more volatile than Hoasen Group. It trades about -0.07 of its total potential returns per unit of risk. Hoasen Group is currently generating about 0.05 per unit of volatility. If you would invest 1,187,204 in Hoasen Group on September 12, 2024 and sell it today you would earn a total of 712,796 from holding Hoasen Group or generate 60.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.02% |
| Values | Daily Returns |
Alphanam ME vs. Hoasen Group
Performance |
| Timeline |
| Alphanam ME |
| Hoasen Group |
Alphanam and Hoasen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Hoasen
The main advantage of trading using opposite Alphanam and Hoasen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Hoasen 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 Hoasen will offset losses from the drop in Hoasen's long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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