Correlation Between Hanoi Plastics and Post
Can any of the company-specific risk be diversified away by investing in both Hanoi Plastics and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Hanoi Plastics and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Plastics and Post.
Diversification Opportunities for Hanoi Plastics and Post
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanoi and Post is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Plastics JSC and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Hanoi Plastics i.e., Hanoi Plastics and Post go up and down completely randomly.
Pair Corralation between Hanoi Plastics and Post
Assuming the 90 days trading horizon Hanoi Plastics JSC is expected to under-perform the Post. But the stock apears to be less risky and, when comparing its historical volatility, Hanoi Plastics JSC is 1.77 times less risky than Post. The stock trades about -0.23 of its potential returns per unit of risk. The Post and Telecommunications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 441,000 in Post and Telecommunications on September 4, 2024 and sell it today you would earn a total of 11,000 from holding Post and Telecommunications or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanoi Plastics JSC vs. Post and Telecommunications
Performance |
| Timeline |
| Hanoi Plastics JSC |
| Post and Telecommuni |
Hanoi Plastics and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Plastics and Post
The main advantage of trading using opposite Hanoi Plastics and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Plastics position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Hanoi Plastics vs. FIT INVEST JSC | Hanoi Plastics vs. Damsan JSC | Hanoi Plastics vs. An Phat Plastic | Hanoi Plastics vs. Alphanam ME |
| Post vs. Vietnam Petroleum Transport | Post vs. Da Nang Construction | Post vs. 1369 Construction JSC | Post vs. PetroVietnam Transportation Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |