Correlation Between Hanoi Plastics and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Hanoi Plastics 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 Hanoi Plastics and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanoi Plastics JSC and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Hanoi Plastics 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 Hanoi Plastics with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Plastics and Hanoi Beer.
Diversification Opportunities for Hanoi Plastics and Hanoi Beer
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanoi and Hanoi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics i.e., Hanoi Plastics and Hanoi Beer go up and down completely randomly.
Pair Corralation between Hanoi Plastics and Hanoi Beer
Assuming the 90 days trading horizon Hanoi Plastics JSC is expected to generate 1.51 times more return on investment than Hanoi Beer. However, Hanoi Plastics is 1.51 times more volatile than Hanoi Beer Alcohol. It trades about 0.0 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.01 per unit of risk. If you would invest 1,415,245 in Hanoi Plastics JSC on October 25, 2024 and sell it today you would lose (110,245) from holding Hanoi Plastics JSC or give up 7.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.15% |
| Values | Daily Returns |
Hanoi Plastics JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Hanoi Plastics JSC |
| Hanoi Beer Alcohol |
Hanoi Plastics and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Plastics and Hanoi Beer
The main advantage of trading using opposite Hanoi Plastics and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Plastics 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.| Hanoi Plastics vs. FIT INVEST JSC | Hanoi Plastics vs. Damsan JSC | Hanoi Plastics vs. An Phat Plastic | Hanoi Plastics vs. APG Securities Joint |
| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. APG Securities Joint |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |