Correlation Between Ha Long and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Ha Long and Hanoi Beer 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 Hanoi Beer 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 Hanoi Beer Alcohol, you can compare the effects of market volatilities on Ha Long and Hanoi Beer 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 Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Hanoi Beer.
Diversification Opportunities for Ha Long and Hanoi Beer
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HID and Hanoi is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol 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 Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Ha Long i.e., Ha Long and Hanoi Beer go up and down completely randomly.
Pair Corralation between Ha Long and Hanoi Beer
Assuming the 90 days trading horizon Ha Long Investment is expected to generate 0.56 times more return on investment than Hanoi Beer. However, Ha Long Investment is 1.78 times less risky than Hanoi Beer. It trades about -0.17 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.11 per unit of risk. If you would invest 273,000 in Ha Long Investment on September 2, 2024 and sell it today you would lose (7,000) from holding Ha Long Investment or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Ha Long Investment vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Ha Long Investment |
| Hanoi Beer Alcohol |
Ha Long and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and Hanoi Beer
The main advantage of trading using opposite Ha Long and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Ha Long vs. Thanh Dat Investment | Ha Long vs. Dinhvu Port Investment | Ha Long vs. Vu Dang Investment | Ha Long vs. Hai An Transport |
| Hanoi Beer vs. Vina2 Investment and | Hanoi Beer vs. Development Investment Construction | Hanoi Beer vs. Danang Education Investment | Hanoi Beer vs. Ha Noi Education |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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