Correlation Between Development Investment and Post
Can any of the company-specific risk be diversified away by investing in both Development Investment and Post 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 Development Investment and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Development Investment Construction and Post and Telecommunications, you can compare the effects of market volatilities on Development Investment and Post 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 Development Investment with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Development Investment and Post.
Diversification Opportunities for Development Investment and Post
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Development and Post is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Development Investment Constru and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni and Development Investment 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 Development Investment Construction are associated (or correlated) with Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Development Investment i.e., Development Investment and Post go up and down completely randomly.
Pair Corralation between Development Investment and Post
Assuming the 90 days trading horizon Development Investment Construction is expected to under-perform the Post. In addition to that, Development Investment is 1.08 times more volatile than Post and Telecommunications. It trades about -0.05 of its total potential returns per unit of risk. Post and Telecommunications is currently generating about 0.01 per unit of volatility. If you would invest 549,000 in Post and Telecommunications on January 20, 2025 and sell it today you would earn a total of 11,000 from holding Post and Telecommunications or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.34% |
| Values | Daily Returns |
Development Investment Constru vs. Post and Telecommunications
Performance |
| Timeline |
| Development Investment |
| Post and Telecommuni |
Development Investment and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Development Investment and Post
The main advantage of trading using opposite Development Investment and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Development Investment position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Development Investment vs. Vietnam Airlines JSC | Development Investment vs. An Phat Plastic | Development Investment vs. Tay Ninh Rubber | Development Investment vs. Hanoi Plastics JSC |
| Post vs. Ha Noi Education | Post vs. Me Lin Steel | Post vs. Vnsteel Vicasa JSC | Post vs. South Basic Chemicals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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