Correlation Between Dinhvu Port and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Dinhvu Port and Hanoi Plastics 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 Dinhvu Port and Hanoi Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dinhvu Port Investment and Hanoi Plastics JSC, you can compare the effects of market volatilities on Dinhvu Port and Hanoi Plastics 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 Dinhvu Port with a short position of Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dinhvu Port and Hanoi Plastics.
Diversification Opportunities for Dinhvu Port and Hanoi Plastics
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dinhvu and Hanoi is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dinhvu Port Investment and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics JSC and Dinhvu Port 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 Dinhvu Port Investment are associated (or correlated) with Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Dinhvu Port i.e., Dinhvu Port and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Dinhvu Port and Hanoi Plastics
Assuming the 90 days trading horizon Dinhvu Port Investment is expected to generate 1.32 times more return on investment than Hanoi Plastics. However, Dinhvu Port is 1.32 times more volatile than Hanoi Plastics JSC. It trades about 0.11 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about -0.14 per unit of risk. If you would invest 8,110,000 in Dinhvu Port Investment on October 11, 2024 and sell it today you would earn a total of 200,000 from holding Dinhvu Port Investment or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dinhvu Port Investment vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Dinhvu Port Investment |
| Hanoi Plastics JSC |
Dinhvu Port and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dinhvu Port and Hanoi Plastics
The main advantage of trading using opposite Dinhvu Port and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dinhvu Port position performs unexpectedly, Hanoi Plastics 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 Plastics will offset losses from the drop in Hanoi Plastics' long position.| Dinhvu Port vs. FIT INVEST JSC | Dinhvu Port vs. Damsan JSC | Dinhvu Port vs. An Phat Plastic | Dinhvu Port vs. APG Securities Joint |
| Hanoi Plastics vs. IDJ FINANCIAL | Hanoi Plastics vs. SMC Investment Trading | Hanoi Plastics vs. Saigon Viendong Technology | Hanoi Plastics vs. Long Giang Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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