Correlation Between Techcom Vietnam and Pha Lai
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By analyzing existing cross correlation between Techcom Vietnam REIT and Pha Lai Thermal, you can compare the effects of market volatilities on Techcom Vietnam 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 Techcom Vietnam with a short position of Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techcom Vietnam and Pha Lai.
Diversification Opportunities for Techcom Vietnam and Pha Lai
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Techcom and Pha is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Techcom Vietnam REIT 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 Techcom Vietnam 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 Techcom Vietnam REIT 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 Techcom Vietnam i.e., Techcom Vietnam and Pha Lai go up and down completely randomly.
Pair Corralation between Techcom Vietnam and Pha Lai
Assuming the 90 days trading horizon Techcom Vietnam REIT is expected to under-perform the Pha Lai. In addition to that, Techcom Vietnam is 2.25 times more volatile than Pha Lai Thermal. It trades about -0.02 of its total potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.01 per unit of volatility. If you would invest 1,197,142 in Pha Lai Thermal on September 4, 2024 and sell it today you would lose (87,142) from holding Pha Lai Thermal or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Techcom Vietnam REIT vs. Pha Lai Thermal
Performance |
| Timeline |
| Techcom Vietnam REIT |
| Pha Lai Thermal |
Techcom Vietnam and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techcom Vietnam and Pha Lai
The main advantage of trading using opposite Techcom Vietnam and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techcom Vietnam 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.| Techcom Vietnam vs. FIT INVEST JSC | Techcom Vietnam vs. Damsan JSC | Techcom Vietnam vs. An Phat Plastic | Techcom Vietnam vs. Alphanam ME |
| Pha Lai vs. Elcom Technology Communications | Pha Lai vs. Dong Nai Plastic | Pha Lai vs. Phuoc Hoa Rubber | Pha Lai vs. Telecoms Informatics JSC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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