Correlation Between Ha Long and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both Ha Long and Mekong Fisheries 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 Ha Long and Mekong Fisheries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and Mekong Fisheries JSC, you can compare the effects of market volatilities on Ha Long and Mekong Fisheries 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 Ha Long with a short position of Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Mekong Fisheries.
Diversification Opportunities for Ha Long and Mekong Fisheries
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HID and Mekong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC and Ha Long 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 Ha Long Investment are associated (or correlated) with Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of Ha Long i.e., Ha Long and Mekong Fisheries go up and down completely randomly.
Pair Corralation between Ha Long and Mekong Fisheries
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 0.79 times more return on investment than Mekong Fisheries. However, Ha Long Investment is 1.27 times less risky than Mekong Fisheries. It trades about -0.07 of its potential returns per unit of risk. Mekong Fisheries JSC is currently generating about -0.07 per unit of risk. If you would invest 319,000 in Ha Long Investment on August 29, 2024 and sell it today you would lose (55,000) from holding Ha Long Investment or give up 17.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Ha Long Investment vs. Mekong Fisheries JSC
Performance |
| Timeline |
| Ha Long Investment |
| Mekong Fisheries JSC |
Ha Long and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and Mekong Fisheries
The main advantage of trading using opposite Ha Long and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' long position.The idea behind Ha Long Investment and Mekong Fisheries JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. Alphanam ME |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |