Correlation Between Construction and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Construction and Hanoi Plastics 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 Construction and Hanoi Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction And Investment and Hanoi Plastics JSC, you can compare the effects of market volatilities on Construction and Hanoi Plastics 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 Construction with a short position of Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction and Hanoi Plastics.
Diversification Opportunities for Construction and Hanoi Plastics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Construction and Hanoi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Construction And Investment and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics JSC and Construction 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 Construction And Investment are associated (or correlated) with Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Construction i.e., Construction and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Construction and Hanoi Plastics
Assuming the 90 days trading horizon Construction And Investment is expected to generate 1.04 times more return on investment than Hanoi Plastics. However, Construction is 1.04 times more volatile than Hanoi Plastics JSC. It trades about 0.07 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about 0.01 per unit of risk. If you would invest 1,998,185 in Construction And Investment on October 30, 2024 and sell it today you would earn a total of 1,711,815 from holding Construction And Investment or generate 85.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Construction And Investment vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Construction And Inv |
| Hanoi Plastics JSC |
Construction and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction and Hanoi Plastics
The main advantage of trading using opposite Construction and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction position performs unexpectedly, Hanoi Plastics 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 Plastics will offset losses from the drop in Hanoi Plastics' long position.| Construction vs. HUD1 Investment and | Construction vs. South Basic Chemicals | Construction vs. Petrolimex Petrochemical JSC | Construction vs. 577 Investment Corp |
| Hanoi Plastics vs. Development Investment Construction | Hanoi Plastics vs. Hung Hau Agricultural | Hanoi Plastics vs. Techno Agricultural Supplying | Hanoi Plastics vs. Visicons Construction and |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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