Correlation Between Hai An and Post
Can any of the company-specific risk be diversified away by investing in both Hai An and Post 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 Hai An and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and Post and Telecommunications, you can compare the effects of market volatilities on Hai An and Post 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 Hai An with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Post.
Diversification Opportunities for Hai An and Post
Very good diversification
The 3 months correlation between Hai and Post is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni and Hai An 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 Hai An Transport are associated (or correlated) with Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Hai An i.e., Hai An and Post go up and down completely randomly.
Pair Corralation between Hai An and Post
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.74 times more return on investment than Post. However, Hai An Transport is 1.34 times less risky than Post. It trades about 0.34 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.21 per unit of risk. If you would invest 4,840,000 in Hai An Transport on November 8, 2024 and sell it today you would earn a total of 570,000 from holding Hai An Transport or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hai An Transport vs. Post and Telecommunications
Performance |
| Timeline |
| Hai An Transport |
| Post and Telecommuni |
Hai An and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and Post
The main advantage of trading using opposite Hai An and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Hai An vs. FIT INVEST JSC | Hai An vs. Damsan JSC | Hai An vs. An Phat Plastic | Hai An vs. APG Securities Joint |
| Post vs. Nafoods Group JSC | Post vs. South Basic Chemicals | Post vs. Hochiminh City Metal | Post vs. Agriculture Printing and |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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