Correlation Between An Phat and Song Hong
Can any of the company-specific risk be diversified away by investing in both An Phat and Song Hong 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 Song Hong 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 Song Hong Aluminum, you can compare the effects of market volatilities on An Phat and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Song Hong.
Diversification Opportunities for An Phat and Song Hong
Excellent diversification
The 3 months correlation between APH and Song is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Song Hong Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Aluminum 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Aluminum has no effect on the direction of An Phat i.e., An Phat and Song Hong go up and down completely randomly.
Pair Corralation between An Phat and Song Hong
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 1.21 times more return on investment than Song Hong. However, An Phat is 1.21 times more volatile than Song Hong Aluminum. It trades about 0.13 of its potential returns per unit of risk. Song Hong Aluminum is currently generating about -0.07 per unit of risk. If you would invest 703,000 in An Phat Holdings on November 7, 2024 and sell it today you would earn a total of 31,000 from holding An Phat Holdings or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
An Phat Holdings vs. Song Hong Aluminum
Performance |
| Timeline |
| An Phat Holdings |
| Song Hong Aluminum |
An Phat and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Song Hong
The main advantage of trading using opposite An Phat and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong'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 |
| Song Hong vs. HVC Investment and | Song Hong vs. Transport and Industry | Song Hong vs. Innovative Technology Development | Song Hong vs. Elcom Technology Communications |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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