Correlation Between Hanoi Beer and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics JSC, you can compare the effects of market volatilities on Hanoi Beer and Hanoi Plastics 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 Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Hanoi Plastics.
Diversification Opportunities for Hanoi Beer and Hanoi Plastics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanoi and Hanoi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics 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 Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Hanoi Beer and Hanoi Plastics
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to under-perform the Hanoi Plastics. But the stock apears to be less risky and, when comparing its historical volatility, Hanoi Beer Alcohol is 1.51 times less risky than Hanoi Plastics. The stock trades about -0.01 of its potential returns per unit of risk. The Hanoi Plastics JSC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,415,245 in Hanoi Plastics JSC on October 25, 2024 and sell it today you would lose (110,245) from holding Hanoi Plastics JSC or give up 7.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.15% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| Hanoi Plastics JSC |
Hanoi Beer and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Hanoi Plastics
The main advantage of trading using opposite Hanoi Beer and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Hanoi Plastics 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 Hanoi Plastics will offset losses from the drop in Hanoi Plastics' long position.| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. APG Securities Joint |
| Hanoi Plastics vs. FIT INVEST JSC | Hanoi Plastics vs. Damsan JSC | Hanoi Plastics vs. An Phat Plastic | Hanoi Plastics vs. APG Securities Joint |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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