Correlation Between Kien Giang and Alphanam
Can any of the company-specific risk be diversified away by investing in both Kien Giang and Alphanam 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 Kien Giang and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kien Giang Construction and Alphanam ME, you can compare the effects of market volatilities on Kien Giang and Alphanam 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 Kien Giang with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kien Giang and Alphanam.
Diversification Opportunities for Kien Giang and Alphanam
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kien and Alphanam is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kien Giang Construction and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Kien Giang 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 Kien Giang Construction are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Kien Giang i.e., Kien Giang and Alphanam go up and down completely randomly.
Pair Corralation between Kien Giang and Alphanam
Assuming the 90 days trading horizon Kien Giang Construction is expected to under-perform the Alphanam. But the stock apears to be less risky and, when comparing its historical volatility, Kien Giang Construction is 2.05 times less risky than Alphanam. The stock trades about -0.53 of its potential returns per unit of risk. The Alphanam ME is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 480,000 in Alphanam ME on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Alphanam ME or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Kien Giang Construction vs. Alphanam ME
Performance |
| Timeline |
| Kien Giang Construction |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kien Giang and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kien Giang and Alphanam
The main advantage of trading using opposite Kien Giang and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kien Giang position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Kien Giang vs. FIT INVEST JSC | Kien Giang vs. Damsan JSC | Kien Giang vs. An Phat Plastic | Kien Giang vs. APG Securities Joint |
| Alphanam vs. Binh Duong Construction | Alphanam vs. Viettel Construction JSC | Alphanam vs. Hung Hau Agricultural | Alphanam vs. Binhthuan Agriculture Services |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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