Correlation Between Thanh Dat and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Hanoi Beer 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 Thanh Dat and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanh Dat Investment and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Thanh Dat and Hanoi Beer 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 Thanh Dat with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Hanoi Beer.
Diversification Opportunities for Thanh Dat and Hanoi Beer
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thanh and Hanoi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Thanh Dat 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 Thanh Dat Investment are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Thanh Dat i.e., Thanh Dat and Hanoi Beer go up and down completely randomly.
Pair Corralation between Thanh Dat and Hanoi Beer
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the Hanoi Beer. But the stock apears to be less risky and, when comparing its historical volatility, Thanh Dat Investment is 1.37 times less risky than Hanoi Beer. The stock trades about -0.26 of its potential returns per unit of risk. The Hanoi Beer Alcohol is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,805,000 in Hanoi Beer Alcohol on October 29, 2024 and sell it today you would lose (105,000) from holding Hanoi Beer Alcohol or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.68% |
| Values | Daily Returns |
Thanh Dat Investment vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Thanh Dat Investment |
| Hanoi Beer Alcohol |
Thanh Dat and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Hanoi Beer
The main advantage of trading using opposite Thanh Dat and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Thanh Dat vs. Tri Viet Management | Thanh Dat vs. Industrial Urban Development | Thanh Dat vs. Post and Telecommunications | Thanh Dat vs. FPT Digital Retail |
| Hanoi Beer vs. Japan Vietnam Medical | Hanoi Beer vs. Danang Education Investment | Hanoi Beer vs. Vu Dang Investment | Hanoi Beer vs. PetroVietnam Drilling Well |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges |