Correlation Between An Phat and Baoviet Securities
Can any of the company-specific risk be diversified away by investing in both An Phat and Baoviet Securities 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 An Phat and Baoviet Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Holdings and Baoviet Securities, you can compare the effects of market volatilities on An Phat and Baoviet Securities 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 An Phat with a short position of Baoviet Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Baoviet Securities.
Diversification Opportunities for An Phat and Baoviet Securities
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APH and Baoviet is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Baoviet Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoviet Securities and An Phat 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 An Phat Holdings are associated (or correlated) with Baoviet Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoviet Securities has no effect on the direction of An Phat i.e., An Phat and Baoviet Securities go up and down completely randomly.
Pair Corralation between An Phat and Baoviet Securities
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 0.98 times more return on investment than Baoviet Securities. However, An Phat Holdings is 1.02 times less risky than Baoviet Securities. It trades about 0.01 of its potential returns per unit of risk. Baoviet Securities is currently generating about -0.19 per unit of risk. If you would invest 719,000 in An Phat Holdings on November 2, 2024 and sell it today you would earn a total of 0.00 from holding An Phat Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Holdings vs. Baoviet Securities
Performance |
| Timeline |
| An Phat Holdings |
| Baoviet Securities |
An Phat and Baoviet Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Baoviet Securities
The main advantage of trading using opposite An Phat and Baoviet Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Baoviet Securities 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 Baoviet Securities will offset losses from the drop in Baoviet Securities' long position.| An Phat vs. Danang Education Investment | An Phat vs. Sao Ta Foods | An Phat vs. Long An Food | An Phat vs. LDG Investment JSC |
| Baoviet Securities vs. Ba Ria Thermal | Baoviet Securities vs. CEO Group JSC | Baoviet Securities vs. Pha Le Plastics | Baoviet Securities vs. Tay Ninh Rubber |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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