Correlation Between Hoang Huy and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Hoang Huy and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Hoang Huy and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoang Huy and Thanh Dat.
Diversification Opportunities for Hoang Huy and Thanh Dat
Weak diversification
The 3 months correlation between Hoang and Thanh is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hoang Huy Investment and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Hoang Huy i.e., Hoang Huy and Thanh Dat go up and down completely randomly.
Pair Corralation between Hoang Huy and Thanh Dat
Assuming the 90 days trading horizon Hoang Huy is expected to generate 1.55 times less return on investment than Thanh Dat. But when comparing it to its historical volatility, Hoang Huy Investment is 1.31 times less risky than Thanh Dat. It trades about 0.07 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 945,180 in Thanh Dat Investment on October 16, 2024 and sell it today you would earn a total of 1,624,820 from holding Thanh Dat Investment or generate 171.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoang Huy Investment vs. Thanh Dat Investment
Performance |
| Timeline |
| Hoang Huy Investment |
| Thanh Dat Investment |
Hoang Huy and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoang Huy and Thanh Dat
The main advantage of trading using opposite Hoang Huy and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoang Huy position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Hoang Huy vs. PV2 Investment JSC | Hoang Huy vs. Saigon Viendong Technology | Hoang Huy vs. Thanh Dat Investment | Hoang Huy vs. Riverway Management JSC |
| Thanh Dat vs. Hai An Transport | Thanh Dat vs. Danang Education Investment | Thanh Dat vs. Hoang Huy Investment | Thanh Dat vs. Vietnam Petroleum Transport |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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