Correlation Between Ha Long and Song Hong
Can any of the company-specific risk be diversified away by investing in both Ha Long and Song Hong 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 Song Hong 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 Song Hong Garment, you can compare the effects of market volatilities on Ha Long and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and Song Hong.
Diversification Opportunities for Ha Long and Song Hong
Very good diversification
The 3 months correlation between HID and Song is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and Song Hong Garment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Garment 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Garment has no effect on the direction of Ha Long i.e., Ha Long and Song Hong go up and down completely randomly.
Pair Corralation between Ha Long and Song Hong
Assuming the 90 days trading horizon Ha Long Investment is expected to under-perform the Song Hong. But the stock apears to be less risky and, when comparing its historical volatility, Ha Long Investment is 2.41 times less risky than Song Hong. The stock trades about -0.28 of its potential returns per unit of risk. The Song Hong Garment is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 4,565,000 in Song Hong Garment on August 27, 2024 and sell it today you would earn a total of 725,000 from holding Song Hong Garment or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ha Long Investment vs. Song Hong Garment
Performance |
| Timeline |
| Ha Long Investment |
| Song Hong Garment |
Ha Long and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and Song Hong
The main advantage of trading using opposite Ha Long and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| Ha Long vs. FIT INVEST JSC | Ha Long vs. Damsan JSC | Ha Long vs. An Phat Plastic | Ha Long vs. APG Securities Joint |
| Song Hong vs. Post and Telecommunications | Song Hong vs. Vina2 Investment and | Song Hong vs. Vu Dang Investment | Song Hong vs. Ha Long Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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