Correlation Between An Phat and Thu Duc
Can any of the company-specific risk be diversified away by investing in both An Phat and Thu Duc 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 Thu Duc 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 Thu Duc TradingImport, you can compare the effects of market volatilities on An Phat and Thu Duc 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 Thu Duc. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Thu Duc.
Diversification Opportunities for An Phat and Thu Duc
Excellent diversification
The 3 months correlation between APH and Thu is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Thu Duc TradingImport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thu Duc TradingImport 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 Thu Duc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thu Duc TradingImport has no effect on the direction of An Phat i.e., An Phat and Thu Duc go up and down completely randomly.
Pair Corralation between An Phat and Thu Duc
Assuming the 90 days trading horizon An Phat Holdings is expected to under-perform the Thu Duc. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Holdings is 1.13 times less risky than Thu Duc. The stock trades about -0.08 of its potential returns per unit of risk. The Thu Duc TradingImport is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 970,000 in Thu Duc TradingImport on October 17, 2024 and sell it today you would lose (110,000) from holding Thu Duc TradingImport or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.94% |
| Values | Daily Returns |
An Phat Holdings vs. Thu Duc TradingImport
Performance |
| Timeline |
| An Phat Holdings |
| Thu Duc TradingImport |
An Phat and Thu Duc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Thu Duc
The main advantage of trading using opposite An Phat and Thu Duc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Thu Duc 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 Thu Duc will offset losses from the drop in Thu Duc's long position.| An Phat vs. Saigon Beer Alcohol | An Phat vs. Vincom Retail JSC | An Phat vs. Techno Agricultural Supplying | An Phat vs. Saigon Machinery Spare |
| Thu Duc vs. Picomat Plastic JSC | Thu Duc vs. Danang Rubber JSC | Thu Duc vs. Binh Minh Plastics | Thu Duc vs. DOMESCO Medical Import |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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