Correlation Between Elcom Technology and An Phat
Can any of the company-specific risk be diversified away by investing in both Elcom Technology and An Phat 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 Elcom Technology and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elcom Technology Communications and An Phat Plastic, you can compare the effects of market volatilities on Elcom Technology and An Phat 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 Elcom Technology with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcom Technology and An Phat.
Diversification Opportunities for Elcom Technology and An Phat
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elcom and AAA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Elcom Technology Communication and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and Elcom Technology 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 Elcom Technology Communications are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Elcom Technology i.e., Elcom Technology and An Phat go up and down completely randomly.
Pair Corralation between Elcom Technology and An Phat
Assuming the 90 days trading horizon Elcom Technology Communications is expected to generate 1.28 times more return on investment than An Phat. However, Elcom Technology is 1.28 times more volatile than An Phat Plastic. It trades about 0.09 of its potential returns per unit of risk. An Phat Plastic is currently generating about 0.02 per unit of risk. If you would invest 960,000 in Elcom Technology Communications on September 3, 2024 and sell it today you would earn a total of 1,660,000 from holding Elcom Technology Communications or generate 172.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elcom Technology Communication vs. An Phat Plastic
Performance |
| Timeline |
| Elcom Technology Com |
| An Phat Plastic |
Elcom Technology and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elcom Technology and An Phat
The main advantage of trading using opposite Elcom Technology and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elcom Technology position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Elcom Technology vs. Tin Nghia Industrial | Elcom Technology vs. Global Electrical Technology | Elcom Technology vs. Hochiminh City Metal | Elcom Technology vs. Sea Air Freight |
| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat vs. APG Securities Joint |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |