Correlation Between Hanoi Beer and Saigon Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Saigon Telecommunicatio 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 Saigon Telecommunicatio 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 Saigon Telecommunication Technologies, you can compare the effects of market volatilities on Hanoi Beer and Saigon Telecommunicatio 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 Saigon Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Saigon Telecommunicatio.
Diversification Opportunities for Hanoi Beer and Saigon Telecommunicatio
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and Saigon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol and Saigon Telecommunication Techn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Telecommunicatio 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 Saigon Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Telecommunicatio has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Saigon Telecommunicatio go up and down completely randomly.
Pair Corralation between Hanoi Beer and Saigon Telecommunicatio
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to generate 0.82 times more return on investment than Saigon Telecommunicatio. However, Hanoi Beer Alcohol is 1.22 times less risky than Saigon Telecommunicatio. It trades about -0.16 of its potential returns per unit of risk. Saigon Telecommunication Technologies is currently generating about -0.28 per unit of risk. If you would invest 3,900,000 in Hanoi Beer Alcohol on September 13, 2024 and sell it today you would lose (100,000) from holding Hanoi Beer Alcohol or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. Saigon Telecommunication Techn
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| Saigon Telecommunicatio |
Hanoi Beer and Saigon Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Saigon Telecommunicatio
The main advantage of trading using opposite Hanoi Beer and Saigon Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Saigon Telecommunicatio 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 Saigon Telecommunicatio will offset losses from the drop in Saigon Telecommunicatio'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 |
| Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |