Correlation Between Hanoi Beer and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and 1369 Construction 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 Hanoi Beer and 1369 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanoi Beer Alcohol and 1369 Construction JSC, you can compare the effects of market volatilities on Hanoi Beer and 1369 Construction 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 Hanoi Beer with a short position of 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and 1369 Construction.
Diversification Opportunities for Hanoi Beer and 1369 Construction
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and 1369 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC and Hanoi Beer 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 Hanoi Beer Alcohol are associated (or correlated) with 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and 1369 Construction go up and down completely randomly.
Pair Corralation between Hanoi Beer and 1369 Construction
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to under-perform the 1369 Construction. But the stock apears to be less risky and, when comparing its historical volatility, Hanoi Beer Alcohol is 2.09 times less risky than 1369 Construction. The stock trades about -0.01 of its potential returns per unit of risk. The 1369 Construction JSC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 601,940 in 1369 Construction JSC on September 4, 2024 and sell it today you would earn a total of 38,060 from holding 1369 Construction JSC or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.69% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. 1369 Construction JSC
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| 1369 Construction JSC |
Hanoi Beer and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and 1369 Construction
The main advantage of trading using opposite Hanoi Beer and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. Alphanam ME |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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