Correlation Between An Phat and Viettel Construction
Can any of the company-specific risk be diversified away by investing in both An Phat and Viettel Construction 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 Viettel Construction 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 Viettel Construction JSC, you can compare the effects of market volatilities on An Phat and Viettel Construction 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 Viettel Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Viettel Construction.
Diversification Opportunities for An Phat and Viettel Construction
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between APH and Viettel is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Viettel Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viettel Construction 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 Viettel Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viettel Construction JSC has no effect on the direction of An Phat i.e., An Phat and Viettel Construction go up and down completely randomly.
Pair Corralation between An Phat and Viettel Construction
Assuming the 90 days trading horizon An Phat is expected to generate 1.2 times less return on investment than Viettel Construction. In addition to that, An Phat is 1.47 times more volatile than Viettel Construction JSC. It trades about 0.09 of its total potential returns per unit of risk. Viettel Construction JSC is currently generating about 0.16 per unit of volatility. If you would invest 12,070,000 in Viettel Construction JSC on October 17, 2024 and sell it today you would earn a total of 530,000 from holding Viettel Construction JSC or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
An Phat Holdings vs. Viettel Construction JSC
Performance |
| Timeline |
| An Phat Holdings |
| Viettel Construction JSC |
An Phat and Viettel Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Viettel Construction
The main advantage of trading using opposite An Phat and Viettel Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Viettel Construction 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 Viettel Construction will offset losses from the drop in Viettel Construction's long position.| An Phat vs. Song Hong Construction | An Phat vs. Techno Agricultural Supplying | An Phat vs. Saigon Machinery Spare | An Phat vs. PVI Reinsurance Corp |
| Viettel Construction vs. POST TELECOMMU | Viettel Construction vs. Telecoms Informatics JSC | Viettel Construction vs. Elcom Technology Communications | Viettel Construction vs. BaoMinh Insurance Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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