Correlation Between Alphanam and Van Phu
Can any of the company-specific risk be diversified away by investing in both Alphanam and Van Phu 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 Van Phu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Van Phu , you can compare the effects of market volatilities on Alphanam and Van Phu 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 Van Phu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Van Phu.
Diversification Opportunities for Alphanam and Van Phu
Very good diversification
The 3 months correlation between Alphanam and Van is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Van Phu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Phu 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 Van Phu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Phu has no effect on the direction of Alphanam i.e., Alphanam and Van Phu go up and down completely randomly.
Pair Corralation between Alphanam and Van Phu
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Van Phu. In addition to that, Alphanam is 2.42 times more volatile than Van Phu . It trades about -0.08 of its total potential returns per unit of risk. Van Phu is currently generating about 0.19 per unit of volatility. If you would invest 5,720,000 in Van Phu on August 27, 2024 and sell it today you would earn a total of 210,000 from holding Van Phu or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Alphanam ME vs. Van Phu
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Van Phu |
Alphanam and Van Phu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Van Phu
The main advantage of trading using opposite Alphanam and Van Phu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Van Phu 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 Van Phu will offset losses from the drop in Van Phu's long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| Van Phu vs. Plastic Additives JSC | Van Phu vs. POST TELECOMMU | Van Phu vs. Picomat Plastic JSC | Van Phu vs. Danang Rubber JSC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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