Correlation Between Asia Pacific and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Asia Pacific and Hanoi Beer 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 Asia Pacific and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Pacific Investment and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Asia Pacific and Hanoi Beer 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 Asia Pacific with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pacific and Hanoi Beer.
Diversification Opportunities for Asia Pacific and Hanoi Beer
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asia and Hanoi is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pacific Investment and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Asia Pacific 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 Asia Pacific Investment are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Asia Pacific i.e., Asia Pacific and Hanoi Beer go up and down completely randomly.
Pair Corralation between Asia Pacific and Hanoi Beer
Assuming the 90 days trading horizon Asia Pacific Investment is expected to under-perform the Hanoi Beer. But the stock apears to be less risky and, when comparing its historical volatility, Asia Pacific Investment is 1.66 times less risky than Hanoi Beer. The stock trades about -0.29 of its potential returns per unit of risk. The Hanoi Beer Alcohol is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,665,000 in Hanoi Beer Alcohol on October 25, 2024 and sell it today you would earn a total of 135,000 from holding Hanoi Beer Alcohol or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Asia Pacific Investment vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Asia Pacific Investment |
| Hanoi Beer Alcohol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asia Pacific and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pacific and Hanoi Beer
The main advantage of trading using opposite Asia Pacific and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pacific position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Asia Pacific vs. FIT INVEST JSC | Asia Pacific vs. Damsan JSC | Asia Pacific vs. An Phat Plastic | Asia Pacific vs. APG Securities Joint |
| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. APG Securities Joint |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |