Correlation Between Hoa Phat and Post
Can any of the company-specific risk be diversified away by investing in both Hoa Phat and Post 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 Hoa Phat and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoa Phat Group and Post and Telecommunications, you can compare the effects of market volatilities on Hoa Phat and Post 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 Hoa Phat with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoa Phat and Post.
Diversification Opportunities for Hoa Phat and Post
Very good diversification
The 3 months correlation between Hoa and Post is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hoa Phat Group and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni and Hoa Phat 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 Hoa Phat Group are associated (or correlated) with Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Hoa Phat i.e., Hoa Phat and Post go up and down completely randomly.
Pair Corralation between Hoa Phat and Post
Assuming the 90 days trading horizon Hoa Phat Group is expected to generate 0.66 times more return on investment than Post. However, Hoa Phat Group is 1.51 times less risky than Post. It trades about 0.07 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.0 per unit of risk. If you would invest 1,668,182 in Hoa Phat Group on September 13, 2024 and sell it today you would earn a total of 1,106,818 from holding Hoa Phat Group or generate 66.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoa Phat Group vs. Post and Telecommunications
Performance |
| Timeline |
| Hoa Phat Group |
| Post and Telecommuni |
Hoa Phat and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoa Phat and Post
The main advantage of trading using opposite Hoa Phat and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoa Phat position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Hoa Phat vs. PV2 Investment JSC | Hoa Phat vs. Elcom Technology Communications | Hoa Phat vs. Saigon Telecommunication Technologies | Hoa Phat vs. Dinhvu Port Investment |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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