Correlation Between HNX 30 and Phuoc Hoa
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By analyzing existing cross correlation between HNX 30 and Phuoc Hoa Rubber, you can compare the effects of market volatilities on HNX 30 and Phuoc Hoa 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 HNX 30 with a short position of Phuoc Hoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Phuoc Hoa.
Diversification Opportunities for HNX 30 and Phuoc Hoa
Poor diversification
The 3 months correlation between HNX and Phuoc is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Phuoc Hoa Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phuoc Hoa Rubber and HNX 30 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 HNX 30 are associated (or correlated) with Phuoc Hoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phuoc Hoa Rubber has no effect on the direction of HNX 30 i.e., HNX 30 and Phuoc Hoa go up and down completely randomly.
Pair Corralation between HNX 30 and Phuoc Hoa
Assuming the 90 days trading horizon HNX 30 is expected to generate 1.78 times less return on investment than Phuoc Hoa. But when comparing it to its historical volatility, HNX 30 is 1.02 times less risky than Phuoc Hoa. It trades about 0.02 of its potential returns per unit of risk. Phuoc Hoa Rubber is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,762,573 in Phuoc Hoa Rubber on August 28, 2024 and sell it today you would earn a total of 937,427 from holding Phuoc Hoa Rubber or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.43% |
| Values | Daily Returns |
HNX 30 vs. Phuoc Hoa Rubber
Performance |
| Timeline |
HNX 30 and Phuoc Hoa Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
Phuoc Hoa Rubber
Pair trading matchups for Phuoc Hoa
Pair Trading with HNX 30 and Phuoc Hoa
The main advantage of trading using opposite HNX 30 and Phuoc Hoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Phuoc Hoa 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 Phuoc Hoa will offset losses from the drop in Phuoc Hoa's long position.| HNX 30 vs. Hochiminh City Metal | HNX 30 vs. VTC Telecommunications JSC | HNX 30 vs. Pacific Petroleum Transportation | HNX 30 vs. Danang Education Investment |
| Phuoc Hoa vs. Transimex Transportation JSC | Phuoc Hoa vs. Elcom Technology Communications | Phuoc Hoa vs. FPT Digital Retail | Phuoc Hoa vs. Truong Thanh Furniture |
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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