Correlation Between Ba Ria and Pha Lai
Can any of the company-specific risk be diversified away by investing in both Ba Ria and Pha Lai 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 Pha Lai 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 Pha Lai Thermal, you can compare the effects of market volatilities on Ba Ria and Pha Lai 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 Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and Pha Lai.
Diversification Opportunities for Ba Ria and Pha Lai
Very weak diversification
The 3 months correlation between BTP and Pha is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Pha Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of Ba Ria i.e., Ba Ria and Pha Lai go up and down completely randomly.
Pair Corralation between Ba Ria and Pha Lai
Assuming the 90 days trading horizon Ba Ria Thermal is expected to generate 0.47 times more return on investment than Pha Lai. However, Ba Ria Thermal is 2.14 times less risky than Pha Lai. It trades about -0.21 of its potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.14 per unit of risk. If you would invest 1,384,385 in Ba Ria Thermal on August 29, 2024 and sell it today you would lose (279,385) from holding Ba Ria Thermal or give up 20.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ba Ria Thermal vs. Pha Lai Thermal
Performance |
| Timeline |
| Ba Ria Thermal |
| Pha Lai Thermal |
Ba Ria and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and Pha Lai
The main advantage of trading using opposite Ba Ria and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, Pha Lai 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 Pha Lai will offset losses from the drop in Pha Lai's long position.| Ba Ria vs. FIT INVEST JSC | Ba Ria vs. Damsan JSC | Ba Ria vs. An Phat Plastic | Ba Ria vs. APG Securities Joint |
| Pha Lai vs. FIT INVEST JSC | Pha Lai vs. Damsan JSC | Pha Lai vs. An Phat Plastic | Pha Lai 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |