Correlation Between Ipa Investments and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Ipa Investments and Thanh Dat 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 Ipa Investments and Thanh Dat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipa Investments Group and Thanh Dat Investment, you can compare the effects of market volatilities on Ipa Investments and Thanh Dat 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 Ipa Investments with a short position of Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipa Investments and Thanh Dat.
Diversification Opportunities for Ipa Investments and Thanh Dat
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ipa and Thanh is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ipa Investments Group and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment and Ipa Investments 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 Ipa Investments Group are associated (or correlated) with Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Ipa Investments i.e., Ipa Investments and Thanh Dat go up and down completely randomly.
Pair Corralation between Ipa Investments and Thanh Dat
Assuming the 90 days trading horizon Ipa Investments Group is expected to generate 0.85 times more return on investment than Thanh Dat. However, Ipa Investments Group is 1.18 times less risky than Thanh Dat. It trades about -0.2 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about -0.41 per unit of risk. If you would invest 1,420,000 in Ipa Investments Group on January 13, 2025 and sell it today you would lose (230,000) from holding Ipa Investments Group or give up 16.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ipa Investments Group vs. Thanh Dat Investment
Performance |
| Timeline |
| Ipa Investments Group |
| Thanh Dat Investment |
Ipa Investments and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipa Investments and Thanh Dat
The main advantage of trading using opposite Ipa Investments and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipa Investments position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Ipa Investments vs. Me Lin Steel | Ipa Investments vs. AgriBank Securities JSC | Ipa Investments vs. Vincom Retail JSC | Ipa Investments vs. Danang Rubber JSC |
| Thanh Dat vs. Everland Investment JSC | Thanh Dat vs. Ha Long Investment | Thanh Dat vs. Investment And Construction | Thanh Dat vs. TDG Global 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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