Correlation Between LDG Investment and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both LDG Investment and Hanoi Beer 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 Hanoi Beer 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 Hanoi Beer Alcohol, you can compare the effects of market volatilities on LDG Investment and Hanoi Beer 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 Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Hanoi Beer.
Diversification Opportunities for LDG Investment and Hanoi Beer
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LDG and Hanoi is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol 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 Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of LDG Investment i.e., LDG Investment and Hanoi Beer go up and down completely randomly.
Pair Corralation between LDG Investment and Hanoi Beer
Assuming the 90 days trading horizon LDG Investment is expected to generate 1.99 times less return on investment than Hanoi Beer. In addition to that, LDG Investment is 2.04 times more volatile than Hanoi Beer Alcohol. It trades about 0.0 of its total potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about 0.02 per unit of volatility. If you would invest 3,820,000 in Hanoi Beer Alcohol on September 2, 2024 and sell it today you would earn a total of 30,000 from holding Hanoi Beer Alcohol or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
LDG Investment JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| LDG Investment JSC |
| Hanoi Beer Alcohol |
LDG Investment and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Hanoi Beer
The main advantage of trading using opposite LDG Investment and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, Hanoi Beer 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 Beer will offset losses from the drop in Hanoi Beer's long position.| LDG Investment vs. Global Electrical Technology | LDG Investment vs. Everland Investment JSC | LDG Investment vs. Fecon Mining JSC | LDG Investment vs. Hanoi Beer Trading |
| Hanoi Beer vs. Vina2 Investment and | Hanoi Beer vs. Development Investment Construction | Hanoi Beer vs. Danang Education Investment | Hanoi Beer vs. Ha Noi Education |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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