Correlation Between LDG Investment and An Phat
Can any of the company-specific risk be diversified away by investing in both LDG Investment and An Phat 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 LDG Investment and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDG Investment JSC and An Phat Plastic, you can compare the effects of market volatilities on LDG Investment and An Phat 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 LDG Investment with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and An Phat.
Diversification Opportunities for LDG Investment and An Phat
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LDG and AAA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and LDG Investment 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 LDG Investment JSC are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of LDG Investment i.e., LDG Investment and An Phat go up and down completely randomly.
Pair Corralation between LDG Investment and An Phat
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the An Phat. In addition to that, LDG Investment is 1.33 times more volatile than An Phat Plastic. It trades about -0.04 of its total potential returns per unit of risk. An Phat Plastic is currently generating about 0.04 per unit of volatility. If you would invest 668,000 in An Phat Plastic on September 14, 2024 and sell it today you would earn a total of 215,000 from holding An Phat Plastic or generate 32.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDG Investment JSC vs. An Phat Plastic
Performance |
| Timeline |
| LDG Investment JSC |
| An Phat Plastic |
LDG Investment and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and An Phat
The main advantage of trading using opposite LDG Investment and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. Alphanam ME |
| An Phat vs. LDG Investment JSC | An Phat vs. Vina2 Investment and | An Phat vs. Ducgiang Chemicals Detergent | An Phat vs. Song Hong Aluminum |
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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