Correlation Between Ba Ria and An Phat
Can any of the company-specific risk be diversified away by investing in both Ba Ria and An Phat 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 Ba Ria and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ba Ria Thermal and An Phat Plastic, you can compare the effects of market volatilities on Ba Ria and An Phat 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 Ba Ria with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and An Phat.
Diversification Opportunities for Ba Ria and An Phat
Weak diversification
The 3 months correlation between BTP and AAA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and Ba Ria 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 Ba Ria Thermal are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Ba Ria i.e., Ba Ria and An Phat go up and down completely randomly.
Pair Corralation between Ba Ria and An Phat
Assuming the 90 days trading horizon Ba Ria Thermal is expected to generate 0.78 times more return on investment than An Phat. However, Ba Ria Thermal is 1.29 times less risky than An Phat. It trades about 0.04 of its potential returns per unit of risk. An Phat Plastic is currently generating about 0.01 per unit of risk. If you would invest 995,276 in Ba Ria Thermal on December 1, 2024 and sell it today you would earn a total of 229,724 from holding Ba Ria Thermal or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ba Ria Thermal vs. An Phat Plastic
Performance |
| Timeline |
| Ba Ria Thermal |
| An Phat Plastic |
Ba Ria and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and An Phat
The main advantage of trading using opposite Ba Ria and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Ba Ria vs. Educational Book In | Ba Ria vs. Vietnam National Reinsurance | Ba Ria vs. Tin Nghia Industrial | Ba Ria vs. Petrolimex Insurance Corp |
| An Phat vs. Vietnam Rubber Group | An Phat vs. Ben Thanh Rubber | An Phat vs. Asia Commercial Bank | An Phat vs. Transport and Industry |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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