Correlation Between Dinhvu Port and Pha Lai
Can any of the company-specific risk be diversified away by investing in both Dinhvu Port and Pha Lai 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 Pha Lai 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 Pha Lai Thermal, you can compare the effects of market volatilities on Dinhvu Port and Pha Lai 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 Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dinhvu Port and Pha Lai.
Diversification Opportunities for Dinhvu Port and Pha Lai
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dinhvu and Pha is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dinhvu Port Investment and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Pha Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of Dinhvu Port i.e., Dinhvu Port and Pha Lai go up and down completely randomly.
Pair Corralation between Dinhvu Port and Pha Lai
Assuming the 90 days trading horizon Dinhvu Port Investment is expected to generate 0.56 times more return on investment than Pha Lai. However, Dinhvu Port Investment is 1.79 times less risky than Pha Lai. It trades about -0.11 of its potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.36 per unit of risk. If you would invest 7,800,000 in Dinhvu Port Investment on September 1, 2024 and sell it today you would lose (150,000) from holding Dinhvu Port Investment or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dinhvu Port Investment vs. Pha Lai Thermal
Performance |
| Timeline |
| Dinhvu Port Investment |
| Pha Lai Thermal |
Dinhvu Port and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dinhvu Port and Pha Lai
The main advantage of trading using opposite Dinhvu Port and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dinhvu Port position performs unexpectedly, Pha Lai 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 Pha Lai will offset losses from the drop in Pha Lai's long position.| Dinhvu Port vs. Elcom Technology Communications | Dinhvu Port vs. Vincom Retail JSC | Dinhvu Port vs. Post and Telecommunications | Dinhvu Port vs. Petrolimex Information Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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