Correlation Between Hanoi Beer and LDG Investment
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and LDG Investment 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 LDG Investment 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 LDG Investment JSC, you can compare the effects of market volatilities on Hanoi Beer and LDG Investment 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 LDG Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and LDG Investment.
Diversification Opportunities for Hanoi Beer and LDG Investment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and LDG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and LDG Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LDG Investment 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 LDG Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LDG Investment JSC has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and LDG Investment go up and down completely randomly.
Pair Corralation between Hanoi Beer and LDG Investment
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to generate 0.49 times more return on investment than LDG Investment. However, Hanoi Beer Alcohol is 2.04 times less risky than LDG Investment. It trades about 0.02 of its potential returns per unit of risk. LDG Investment JSC is currently generating about 0.0 per unit of risk. If you would invest 3,820,000 in Hanoi Beer Alcohol on September 2, 2024 and sell it today you would earn a total of 30,000 from holding Hanoi Beer Alcohol or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. LDG Investment JSC
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| LDG Investment JSC |
Hanoi Beer and LDG Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and LDG Investment
The main advantage of trading using opposite Hanoi Beer and LDG Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, LDG Investment 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 LDG Investment will offset losses from the drop in LDG Investment's long position.| Hanoi Beer vs. Vina2 Investment and | Hanoi Beer vs. Development Investment Construction | Hanoi Beer vs. Danang Education Investment | Hanoi Beer vs. Ha Noi Education |
| LDG Investment vs. Global Electrical Technology | LDG Investment vs. Everland Investment JSC | LDG Investment vs. Fecon Mining JSC | LDG Investment vs. Hanoi Beer Trading |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |