Correlation Between Hoang Huy and An Phat
Can any of the company-specific risk be diversified away by investing in both Hoang Huy 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 Hoang Huy and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoang Huy Investment and An Phat Plastic, you can compare the effects of market volatilities on Hoang Huy 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 Hoang Huy with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoang Huy and An Phat.
Diversification Opportunities for Hoang Huy and An Phat
Very weak diversification
The 3 months correlation between Hoang and AAA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hoang Huy Investment 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 Hoang Huy 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 Hoang Huy Investment 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 Hoang Huy i.e., Hoang Huy and An Phat go up and down completely randomly.
Pair Corralation between Hoang Huy and An Phat
Assuming the 90 days trading horizon Hoang Huy Investment is expected to under-perform the An Phat. In addition to that, Hoang Huy is 1.5 times more volatile than An Phat Plastic. It trades about -0.05 of its total potential returns per unit of risk. An Phat Plastic is currently generating about -0.03 per unit of volatility. If you would invest 848,000 in An Phat Plastic on October 30, 2024 and sell it today you would lose (12,000) from holding An Phat Plastic or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoang Huy Investment vs. An Phat Plastic
Performance |
| Timeline |
| Hoang Huy Investment |
| An Phat Plastic |
Hoang Huy and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoang Huy and An Phat
The main advantage of trading using opposite Hoang Huy and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoang Huy 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.| Hoang Huy vs. Petrolimex International Trading | Hoang Huy vs. MST Investment JSC | Hoang Huy vs. Thong Nhat Rubber | Hoang Huy vs. Southern Rubber Industry |
| An Phat vs. Long An Food | An Phat vs. PostTelecommunication Equipment | An Phat vs. Vietnam Construction JSC | An Phat vs. Kien Giang Construction |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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