Correlation Between Alphanam and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Alphanam and Hanoi Plastics 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 Plastics 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 Plastics JSC, you can compare the effects of market volatilities on Alphanam and Hanoi Plastics 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 Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Hanoi Plastics.
Diversification Opportunities for Alphanam and Hanoi Plastics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alphanam and Hanoi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics JSC 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 Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Alphanam i.e., Alphanam and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Alphanam and Hanoi Plastics
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Hanoi Plastics. In addition to that, Alphanam is 3.12 times more volatile than Hanoi Plastics JSC. It trades about -0.15 of its total potential returns per unit of risk. Hanoi Plastics JSC is currently generating about -0.2 per unit of volatility. If you would invest 1,450,000 in Hanoi Plastics JSC on September 3, 2024 and sell it today you would lose (135,000) from holding Hanoi Plastics JSC or give up 9.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.84% |
| Values | Daily Returns |
Alphanam ME vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Alphanam ME |
| Hanoi Plastics JSC |
Alphanam and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Hanoi Plastics
The main advantage of trading using opposite Alphanam and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Hanoi Plastics 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 Plastics will offset losses from the drop in Hanoi Plastics' long position.| Alphanam vs. HVC Investment and | Alphanam vs. Construction And Investment | Alphanam vs. Techno Agricultural Supplying | Alphanam vs. Ha Long Investment |
| Hanoi Plastics vs. Vu Dang Investment | Hanoi Plastics vs. Petrolimex International Trading | Hanoi Plastics vs. HUD1 Investment and | Hanoi Plastics vs. Vina2 Investment and |
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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