Correlation Between An Pha and Din Capital
Can any of the company-specific risk be diversified away by investing in both An Pha and Din Capital 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 Pha and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Pha Petroleum and Din Capital Investment, you can compare the effects of market volatilities on An Pha and Din Capital 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 Pha with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Pha and Din Capital.
Diversification Opportunities for An Pha and Din Capital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASP and Din is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding An Pha Petroleum and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and An Pha 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 Pha Petroleum are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of An Pha i.e., An Pha and Din Capital go up and down completely randomly.
Pair Corralation between An Pha and Din Capital
Assuming the 90 days trading horizon An Pha is expected to generate 1.57 times less return on investment than Din Capital. In addition to that, An Pha is 1.01 times more volatile than Din Capital Investment. It trades about 0.13 of its total potential returns per unit of risk. Din Capital Investment is currently generating about 0.21 per unit of volatility. If you would invest 880,000 in Din Capital Investment on August 28, 2024 and sell it today you would earn a total of 90,000 from holding Din Capital Investment or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
An Pha Petroleum vs. Din Capital Investment
Performance |
| Timeline |
| An Pha Petroleum |
| Din Capital Investment |
An Pha and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Pha and Din Capital
The main advantage of trading using opposite An Pha and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Pha position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| An Pha vs. Thanh Dat Investment | An Pha vs. Danang Education Investment | An Pha vs. CMC Investment JSC | An Pha vs. Vietnam Airlines JSC |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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