Correlation Between LDG Investment and Pha Lai
Can any of the company-specific risk be diversified away by investing in both LDG Investment and Pha Lai 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 Pha Lai 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 Pha Lai Thermal, you can compare the effects of market volatilities on LDG Investment and Pha Lai 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 Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Pha Lai.
Diversification Opportunities for LDG Investment and Pha Lai
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LDG and Pha is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Pha Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of LDG Investment i.e., LDG Investment and Pha Lai go up and down completely randomly.
Pair Corralation between LDG Investment and Pha Lai
Assuming the 90 days trading horizon LDG Investment JSC is expected to under-perform the Pha Lai. In addition to that, LDG Investment is 1.75 times more volatile than Pha Lai Thermal. It trades about -0.05 of its total potential returns per unit of risk. Pha Lai Thermal is currently generating about 0.01 per unit of volatility. If you would invest 1,087,640 in Pha Lai Thermal on October 13, 2024 and sell it today you would earn a total of 12,360 from holding Pha Lai Thermal or generate 1.14% 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. Pha Lai Thermal
Performance |
| Timeline |
| LDG Investment JSC |
| Pha Lai Thermal |
LDG Investment and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Pha Lai
The main advantage of trading using opposite LDG Investment and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, Pha Lai 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 Pha Lai will offset losses from the drop in Pha Lai'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 |
| Pha Lai vs. Vina2 Investment and | Pha Lai vs. LDG Investment JSC | Pha Lai vs. Thanh Dat Investment | Pha Lai vs. Tien Giang 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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