Correlation Between ASG Corp and Ha Long
Can any of the company-specific risk be diversified away by investing in both ASG Corp and Ha Long 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 ASG Corp and Ha Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASG Corp and Ha Long Investment, you can compare the effects of market volatilities on ASG Corp and Ha Long 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 ASG Corp with a short position of Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASG Corp and Ha Long.
Diversification Opportunities for ASG Corp and Ha Long
Excellent diversification
The 3 months correlation between ASG and HID is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ASG Corp and Ha Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Long Investment and ASG Corp 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 ASG Corp are associated (or correlated) with Ha Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Long Investment has no effect on the direction of ASG Corp i.e., ASG Corp and Ha Long go up and down completely randomly.
Pair Corralation between ASG Corp and Ha Long
Assuming the 90 days trading horizon ASG Corp is expected to generate about the same return on investment as Ha Long Investment. But, ASG Corp is 1.27 times less risky than Ha Long. It trades about -0.05 of its potential returns per unit of risk. Ha Long Investment is currently generating about -0.04 per unit of risk. If you would invest 384,000 in Ha Long Investment on November 28, 2024 and sell it today you would lose (98,000) from holding Ha Long Investment or give up 25.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.63% |
| Values | Daily Returns |
ASG Corp vs. Ha Long Investment
Performance |
| Timeline |
| ASG Corp |
| Ha Long Investment |
ASG Corp and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASG Corp and Ha Long
The main advantage of trading using opposite ASG Corp and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASG Corp position performs unexpectedly, Ha Long 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 Ha Long will offset losses from the drop in Ha Long's long position.| ASG Corp vs. FIT INVEST JSC | ASG Corp vs. Damsan JSC | ASG Corp vs. An Phat Plastic | ASG Corp vs. Alphanam ME |
| Ha Long vs. Pha Le Plastics | Ha Long vs. An Phat Plastic | Ha Long vs. Phuoc Hoa Rubber | Ha Long vs. Vietnam Technological And |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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