Correlation Between Hanoi Beer and Picomat Plastic
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Picomat Plastic 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 Picomat Plastic 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 Picomat Plastic JSC, you can compare the effects of market volatilities on Hanoi Beer and Picomat Plastic 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 Picomat Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Picomat Plastic.
Diversification Opportunities for Hanoi Beer and Picomat Plastic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and Picomat is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and Picomat Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picomat Plastic 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 Picomat Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picomat Plastic JSC has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Picomat Plastic go up and down completely randomly.
Pair Corralation between Hanoi Beer and Picomat Plastic
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to under-perform the Picomat Plastic. In addition to that, Hanoi Beer is 2.41 times more volatile than Picomat Plastic JSC. It trades about 0.0 of its total potential returns per unit of risk. Picomat Plastic JSC is currently generating about 0.09 per unit of volatility. If you would invest 1,260,000 in Picomat Plastic JSC on October 9, 2024 and sell it today you would earn a total of 20,000 from holding Picomat Plastic JSC or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. Picomat Plastic JSC
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| Picomat Plastic JSC |
Hanoi Beer and Picomat Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Picomat Plastic
The main advantage of trading using opposite Hanoi Beer and Picomat Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Picomat Plastic 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 Picomat Plastic will offset losses from the drop in Picomat Plastic's long position.| Hanoi Beer vs. BaoMinh Insurance Corp | Hanoi Beer vs. Asia Pacific Investment | Hanoi Beer vs. DOMESCO Medical Import | Hanoi Beer vs. PVI Reinsurance Corp |
| Picomat Plastic vs. FIT INVEST JSC | Picomat Plastic vs. Damsan JSC | Picomat Plastic vs. An Phat Plastic | Picomat Plastic 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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