Correlation Between Hanoi Plastics and Tay Ninh
Can any of the company-specific risk be diversified away by investing in both Hanoi Plastics and Tay Ninh 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 Tay Ninh 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 Tay Ninh Rubber, you can compare the effects of market volatilities on Hanoi Plastics and Tay Ninh 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 Tay Ninh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Plastics and Tay Ninh.
Diversification Opportunities for Hanoi Plastics and Tay Ninh
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanoi and Tay is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Plastics JSC and Tay Ninh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tay Ninh Rubber 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 Tay Ninh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tay Ninh Rubber has no effect on the direction of Hanoi Plastics i.e., Hanoi Plastics and Tay Ninh go up and down completely randomly.
Pair Corralation between Hanoi Plastics and Tay Ninh
Assuming the 90 days trading horizon Hanoi Plastics JSC is expected to under-perform the Tay Ninh. But the stock apears to be less risky and, when comparing its historical volatility, Hanoi Plastics JSC is 1.19 times less risky than Tay Ninh. The stock trades about -0.19 of its potential returns per unit of risk. The Tay Ninh Rubber is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,203,250 in Tay Ninh Rubber on August 28, 2024 and sell it today you would earn a total of 476,750 from holding Tay Ninh Rubber or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.06% |
| Values | Daily Returns |
Hanoi Plastics JSC vs. Tay Ninh Rubber
Performance |
| Timeline |
| Hanoi Plastics JSC |
| Tay Ninh Rubber |
Hanoi Plastics and Tay Ninh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Plastics and Tay Ninh
The main advantage of trading using opposite Hanoi Plastics and Tay Ninh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Plastics position performs unexpectedly, Tay Ninh 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 Tay Ninh will offset losses from the drop in Tay Ninh'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 |
| Tay Ninh vs. Dong Nai Plastic | Tay Ninh vs. Saigon Beer Alcohol | Tay Ninh vs. Hanoi Plastics JSC | Tay Ninh vs. BIDV Insurance 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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