Correlation Between Hanoi Beer and Din Capital
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer and Din Capital 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 Hanoi Beer and Din Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanoi Beer Trading and Din Capital Investment, you can compare the effects of market volatilities on Hanoi Beer and Din Capital 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 Hanoi Beer with a short position of Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and Din Capital.
Diversification Opportunities for Hanoi Beer and Din Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanoi and Din is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Trading and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment and Hanoi Beer 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 Hanoi Beer Trading are associated (or correlated) with Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Hanoi Beer i.e., Hanoi Beer and Din Capital go up and down completely randomly.
Pair Corralation between Hanoi Beer and Din Capital
Assuming the 90 days trading horizon Hanoi Beer Trading is expected to generate 1.74 times more return on investment than Din Capital. However, Hanoi Beer is 1.74 times more volatile than Din Capital Investment. It trades about 0.09 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.01 per unit of risk. If you would invest 1,804,091 in Hanoi Beer Trading on September 14, 2024 and sell it today you would earn a total of 2,445,909 from holding Hanoi Beer Trading or generate 135.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.25% |
| Values | Daily Returns |
Hanoi Beer Trading vs. Din Capital Investment
Performance |
| Timeline |
| Hanoi Beer Trading |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Din Capital Investment |
Hanoi Beer and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and Din Capital
The main advantage of trading using opposite Hanoi Beer and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| Hanoi Beer vs. Hochiminh City Metal | Hanoi Beer vs. Nafoods Group JSC | Hanoi Beer vs. Fecon Mining JSC | Hanoi Beer vs. Post and Telecommunications |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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