Correlation Between An Phat and Danang Port
Can any of the company-specific risk be diversified away by investing in both An Phat and Danang Port 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 Danang Port 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 Danang Port JSC, you can compare the effects of market volatilities on An Phat and Danang Port 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 Danang Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Danang Port.
Diversification Opportunities for An Phat and Danang Port
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between APH and Danang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Danang Port JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danang Port JSC 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 Danang Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danang Port JSC has no effect on the direction of An Phat i.e., An Phat and Danang Port go up and down completely randomly.
Pair Corralation between An Phat and Danang Port
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 1.58 times more return on investment than Danang Port. However, An Phat is 1.58 times more volatile than Danang Port JSC. It trades about 0.15 of its potential returns per unit of risk. Danang Port JSC is currently generating about 0.11 per unit of risk. If you would invest 685,000 in An Phat Holdings on October 20, 2024 and sell it today you would earn a total of 39,000 from holding An Phat Holdings or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
An Phat Holdings vs. Danang Port JSC
Performance |
| Timeline |
| An Phat Holdings |
| Danang Port JSC |
An Phat and Danang Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Danang Port
The main advantage of trading using opposite An Phat and Danang Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Danang Port 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 Danang Port will offset losses from the drop in Danang Port's long position.| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. An Phat Plastic | An Phat vs. APG Securities Joint |
| Danang Port vs. TDT Investment and | Danang Port vs. Military Insurance Corp | Danang Port vs. Tin Nghia Industrial | Danang Port vs. Dinhvu Port Investment |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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