Correlation Between An Phat and Techno Agricultural
Can any of the company-specific risk be diversified away by investing in both An Phat and Techno Agricultural 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 Techno Agricultural 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 Techno Agricultural Supplying, you can compare the effects of market volatilities on An Phat and Techno Agricultural 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 Techno Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Techno Agricultural.
Diversification Opportunities for An Phat and Techno Agricultural
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APH and Techno is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and Techno Agricultural Supplying in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techno Agricultural 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 Techno Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techno Agricultural has no effect on the direction of An Phat i.e., An Phat and Techno Agricultural go up and down completely randomly.
Pair Corralation between An Phat and Techno Agricultural
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 2.06 times more return on investment than Techno Agricultural. However, An Phat is 2.06 times more volatile than Techno Agricultural Supplying. It trades about 0.09 of its potential returns per unit of risk. Techno Agricultural Supplying is currently generating about -0.36 per unit of risk. If you would invest 671,000 in An Phat Holdings on October 17, 2024 and sell it today you would earn a total of 22,000 from holding An Phat Holdings or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
An Phat Holdings vs. Techno Agricultural Supplying
Performance |
| Timeline |
| An Phat Holdings |
| Techno Agricultural |
An Phat and Techno Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Techno Agricultural
The main advantage of trading using opposite An Phat and Techno Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Techno Agricultural 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 Techno Agricultural will offset losses from the drop in Techno Agricultural'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 |
| Techno Agricultural vs. BaoMinh Insurance Corp | Techno Agricultural vs. Vinhomes JSC | Techno Agricultural vs. Telecoms Informatics JSC | Techno Agricultural vs. BIDV 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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