Correlation Between Thanh Dat and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Thanh Dat and Saigon 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 Saigon 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on Thanh Dat and Saigon 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Saigon Beer.
Diversification Opportunities for Thanh Dat and Saigon Beer
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thanh and Saigon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Thanh Dat i.e., Thanh Dat and Saigon Beer go up and down completely randomly.
Pair Corralation between Thanh Dat and Saigon Beer
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the Saigon Beer. In addition to that, Thanh Dat is 2.55 times more volatile than Saigon Beer Alcohol. It trades about -0.02 of its total potential returns per unit of risk. Saigon Beer Alcohol is currently generating about 0.14 per unit of volatility. If you would invest 5,610,000 in Saigon Beer Alcohol on September 15, 2024 and sell it today you would earn a total of 130,000 from holding Saigon Beer Alcohol or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanh Dat Investment vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Thanh Dat Investment |
| Saigon Beer Alcohol |
Thanh Dat and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanh Dat and Saigon Beer
The main advantage of trading using opposite Thanh Dat and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat position performs unexpectedly, Saigon 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat vs. Alphanam ME |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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