Correlation Between Alphanam and Phat Dat
Can any of the company-specific risk be diversified away by investing in both Alphanam and Phat Dat 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 Phat Dat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Phat Dat Real, you can compare the effects of market volatilities on Alphanam and Phat Dat 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 Phat Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Phat Dat.
Diversification Opportunities for Alphanam and Phat Dat
Very weak diversification
The 3 months correlation between Alphanam and Phat is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Phat Dat Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phat Dat Real 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 Phat Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phat Dat Real has no effect on the direction of Alphanam i.e., Alphanam and Phat Dat go up and down completely randomly.
Pair Corralation between Alphanam and Phat Dat
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Phat Dat. In addition to that, Alphanam is 1.02 times more volatile than Phat Dat Real. It trades about -0.07 of its total potential returns per unit of risk. Phat Dat Real is currently generating about 0.04 per unit of volatility. If you would invest 1,400,351 in Phat Dat Real on September 2, 2024 and sell it today you would earn a total of 719,649 from holding Phat Dat Real or generate 51.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.56% |
| Values | Daily Returns |
Alphanam ME vs. Phat Dat Real
Performance |
| Timeline |
| Alphanam ME |
| Phat Dat Real |
Alphanam and Phat Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Phat Dat
The main advantage of trading using opposite Alphanam and Phat Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Phat Dat 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 Phat Dat will offset losses from the drop in Phat Dat's long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| Phat Dat vs. FIT INVEST JSC | Phat Dat vs. Damsan JSC | Phat Dat vs. An Phat Plastic | Phat Dat vs. Alphanam ME |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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