Correlation Between Song Hong and Dat Phuong
Can any of the company-specific risk be diversified away by investing in both Song Hong and Dat Phuong 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 Song Hong and Dat Phuong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Song Hong Garment and Dat Phuong JSC, you can compare the effects of market volatilities on Song Hong and Dat Phuong 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 Song Hong with a short position of Dat Phuong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Song Hong and Dat Phuong.
Diversification Opportunities for Song Hong and Dat Phuong
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Song and Dat is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Song Hong Garment and Dat Phuong JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dat Phuong JSC and Song Hong 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 Song Hong Garment are associated (or correlated) with Dat Phuong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dat Phuong JSC has no effect on the direction of Song Hong i.e., Song Hong and Dat Phuong go up and down completely randomly.
Pair Corralation between Song Hong and Dat Phuong
Assuming the 90 days trading horizon Song Hong is expected to generate 1.28 times less return on investment than Dat Phuong. But when comparing it to its historical volatility, Song Hong Garment is 1.37 times less risky than Dat Phuong. It trades about 0.06 of its potential returns per unit of risk. Dat Phuong JSC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,768,045 in Dat Phuong JSC on September 2, 2024 and sell it today you would earn a total of 2,351,955 from holding Dat Phuong JSC or generate 84.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Song Hong Garment vs. Dat Phuong JSC
Performance |
| Timeline |
| Song Hong Garment |
| Dat Phuong JSC |
Song Hong and Dat Phuong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Song Hong and Dat Phuong
The main advantage of trading using opposite Song Hong and Dat Phuong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Song Hong position performs unexpectedly, Dat Phuong 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 Dat Phuong will offset losses from the drop in Dat Phuong's long position.| Song Hong vs. FIT INVEST JSC | Song Hong vs. Damsan JSC | Song Hong vs. An Phat Plastic | Song Hong vs. Alphanam ME |
| Dat Phuong vs. Development Investment Construction | Dat Phuong vs. Century Synthetic Fiber | Dat Phuong vs. Hanoi Beer Alcohol | Dat Phuong vs. Bich Chi Food |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |