Correlation Between Alphanam and South Books
Can any of the company-specific risk be diversified away by investing in both Alphanam and South Books 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 South Books into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and South Books Educational, you can compare the effects of market volatilities on Alphanam and South Books 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 South Books. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and South Books.
Diversification Opportunities for Alphanam and South Books
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alphanam and South is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and South Books Educational in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Books Educational 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 South Books. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Books Educational has no effect on the direction of Alphanam i.e., Alphanam and South Books go up and down completely randomly.
Pair Corralation between Alphanam and South Books
Assuming the 90 days trading horizon Alphanam is expected to generate 43.9 times less return on investment than South Books. But when comparing it to its historical volatility, Alphanam ME is 1.39 times less risky than South Books. It trades about 0.01 of its potential returns per unit of risk. South Books Educational is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,300,000 in South Books Educational on December 1, 2024 and sell it today you would earn a total of 100,000 from holding South Books Educational or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.33% |
| Values | Daily Returns |
Alphanam ME vs. South Books Educational
Performance |
| Timeline |
| Alphanam ME |
| South Books Educational |
Alphanam and South Books Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and South Books
The main advantage of trading using opposite Alphanam and South Books positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, South Books 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 South Books will offset losses from the drop in South Books' long position.| Alphanam vs. Vietnam Petroleum Transport | Alphanam vs. Construction And Investment | Alphanam vs. POST TELECOMMU | Alphanam vs. Petrolimex Information Technology |
| South Books vs. Petrolimex Information Technology | South Books vs. Hai An Transport | South Books vs. Truong Thanh Furniture | South Books vs. Song Hong Aluminum |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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