Correlation Between Thanh Dat and POT
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and POT 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 POT 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 PostTelecommunication Equipment, you can compare the effects of market volatilities on Thanh Dat and POT 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 POT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and POT.
Diversification Opportunities for Thanh Dat and POT
Very weak diversification
The 3 months correlation between Thanh and POT is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and PostTelecommunication Equipmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostTelecommunication 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 POT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostTelecommunication has no effect on the direction of Thanh Dat i.e., Thanh Dat and POT go up and down completely randomly.
Pair Corralation between Thanh Dat and POT
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the POT. But the stock apears to be less risky and, when comparing its historical volatility, Thanh Dat Investment is 2.31 times less risky than POT. The stock trades about -0.21 of its potential returns per unit of risk. The PostTelecommunication Equipment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,470,000 in PostTelecommunication Equipment on November 8, 2024 and sell it today you would earn a total of 30,000 from holding PostTelecommunication Equipment or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 58.82% |
| Values | Daily Returns |
Thanh Dat Investment vs. PostTelecommunication Equipmen
Performance |
| Timeline |
| Thanh Dat Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PostTelecommunication |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Thanh Dat and POT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and POT
The main advantage of trading using opposite Thanh Dat and POT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, POT 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 POT will offset losses from the drop in POT's long position.| Thanh Dat vs. Fecon Mining JSC | Thanh Dat vs. Nafoods Group JSC | Thanh Dat vs. HVC Investment and | Thanh Dat vs. Long Giang Investment |
| POT vs. Long An Food | POT vs. Nam Long Investment | POT vs. Tien Giang Investment | POT vs. BaoMinh Insurance Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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