Correlation Between Fecon Mining and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Hanoi 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 Fecon Mining and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fecon Mining JSC and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Fecon Mining and Hanoi 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 Fecon Mining with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Hanoi Beer.
Diversification Opportunities for Fecon Mining and Hanoi Beer
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fecon and Hanoi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Fecon Mining 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 Fecon Mining JSC are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Fecon Mining i.e., Fecon Mining and Hanoi Beer go up and down completely randomly.
Pair Corralation between Fecon Mining and Hanoi Beer
Assuming the 90 days trading horizon Fecon Mining JSC is expected to generate 1.43 times more return on investment than Hanoi Beer. However, Fecon Mining is 1.43 times more volatile than Hanoi Beer Alcohol. It trades about -0.01 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.01 per unit of risk. If you would invest 365,000 in Fecon Mining JSC on September 4, 2024 and sell it today you would lose (56,000) from holding Fecon Mining JSC or give up 15.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.5% |
| Values | Daily Returns |
Fecon Mining JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Fecon Mining JSC |
| Hanoi Beer Alcohol |
Fecon Mining and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Hanoi Beer
The main advantage of trading using opposite Fecon Mining and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Hanoi 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. Alphanam ME |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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