Correlation Between LDG Investment and Ha Long
Can any of the company-specific risk be diversified away by investing in both LDG Investment and Ha Long 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 Ha Long 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 Ha Long Investment, you can compare the effects of market volatilities on LDG Investment and Ha Long 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 Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Ha Long.
Diversification Opportunities for LDG Investment and Ha Long
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between LDG and HID is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and Ha Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Long Investment 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 Ha Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Long Investment has no effect on the direction of LDG Investment i.e., LDG Investment and Ha Long go up and down completely randomly.
Pair Corralation between LDG Investment and Ha Long
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the Ha Long. But the stock apears to be less risky and, when comparing its historical volatility, LDG Investment JSC is 1.79 times less risky than Ha Long. The stock trades about -0.07 of its potential returns per unit of risk. The Ha Long Investment is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 262,000 in Ha Long Investment on November 11, 2024 and sell it today you would earn a total of 28,000 from holding Ha Long Investment or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDG Investment JSC vs. Ha Long Investment
Performance |
| Timeline |
| LDG Investment JSC |
| Ha Long Investment |
LDG Investment and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Ha Long
The main advantage of trading using opposite LDG Investment and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, Ha Long 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 Ha Long will offset losses from the drop in Ha Long's long position.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. APG Securities Joint |
| Ha Long vs. Petrolimex Petrochemical JSC | Ha Long vs. Saigon Beer Alcohol | Ha Long vs. Techcom Vietnam REIT | Ha Long vs. South Basic Chemicals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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