Correlation Between MST Investment and Hoasen
Can any of the company-specific risk be diversified away by investing in both MST Investment and Hoasen 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 MST Investment and Hoasen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MST Investment JSC and Hoasen Group, you can compare the effects of market volatilities on MST Investment and Hoasen 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 MST Investment with a short position of Hoasen. Check out your portfolio center. Please also check ongoing floating volatility patterns of MST Investment and Hoasen.
Diversification Opportunities for MST Investment and Hoasen
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MST and Hoasen is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MST Investment JSC and Hoasen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoasen Group and MST 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 MST Investment JSC are associated (or correlated) with Hoasen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoasen Group has no effect on the direction of MST Investment i.e., MST Investment and Hoasen go up and down completely randomly.
Pair Corralation between MST Investment and Hoasen
Assuming the 90 days trading horizon MST Investment JSC is expected to generate 2.09 times more return on investment than Hoasen. However, MST Investment is 2.09 times more volatile than Hoasen Group. It trades about 0.25 of its potential returns per unit of risk. Hoasen Group is currently generating about -0.17 per unit of risk. If you would invest 570,000 in MST Investment JSC on September 13, 2024 and sell it today you would earn a total of 110,000 from holding MST Investment JSC or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MST Investment JSC vs. Hoasen Group
Performance |
| Timeline |
| MST Investment JSC |
| Hoasen Group |
MST Investment and Hoasen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MST Investment and Hoasen
The main advantage of trading using opposite MST Investment and Hoasen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MST Investment position performs unexpectedly, Hoasen 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 Hoasen will offset losses from the drop in Hoasen's long position.| MST Investment vs. FIT INVEST JSC | MST Investment vs. Damsan JSC | MST Investment vs. An Phat Plastic | MST Investment vs. Alphanam ME |
| Hoasen vs. MST Investment JSC | Hoasen vs. Hochiminh City Metal | Hoasen vs. Everland Investment JSC | Hoasen vs. LDG Investment JSC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |