Correlation Between Hanoi Beer and Kien Giang
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Kien Giang 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 Kien Giang 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 Kien Giang Construction, you can compare the effects of market volatilities on Hanoi Beer and Kien Giang 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 Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Kien Giang.
Diversification Opportunities for Hanoi Beer and Kien Giang
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and Kien is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction 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 Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Kien Giang go up and down completely randomly.
Pair Corralation between Hanoi Beer and Kien Giang
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to generate 0.72 times more return on investment than Kien Giang. However, Hanoi Beer Alcohol is 1.39 times less risky than Kien Giang. It trades about -0.1 of its potential returns per unit of risk. Kien Giang Construction is currently generating about -0.35 per unit of risk. If you would invest 3,945,000 in Hanoi Beer Alcohol on September 3, 2024 and sell it today you would lose (95,000) from holding Hanoi Beer Alcohol or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. Kien Giang Construction
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| Kien Giang Construction |
Hanoi Beer and Kien Giang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Kien Giang
The main advantage of trading using opposite Hanoi Beer and Kien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Kien Giang 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 Kien Giang will offset losses from the drop in Kien Giang's long position.| Hanoi Beer vs. 1369 Construction JSC | Hanoi Beer vs. POST TELECOMMU | Hanoi Beer vs. Telecoms Informatics JSC | Hanoi Beer vs. Post and Telecommunications |
| Kien Giang vs. FIT INVEST JSC | Kien Giang vs. Damsan JSC | Kien Giang vs. An Phat Plastic | Kien Giang vs. Alphanam ME |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |