Correlation Between Din Capital and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Din Capital 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 Din Capital and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Din Capital Investment and Hanoi Beer Trading, you can compare the effects of market volatilities on Din Capital 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 Din Capital with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and Hanoi Beer.
Diversification Opportunities for Din Capital and Hanoi Beer
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Din and Hanoi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment and Hanoi Beer Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Trading and Din Capital 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 Din Capital Investment 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 Trading has no effect on the direction of Din Capital i.e., Din Capital and Hanoi Beer go up and down completely randomly.
Pair Corralation between Din Capital and Hanoi Beer
Assuming the 90 days trading horizon Din Capital is expected to generate 11.04 times less return on investment than Hanoi Beer. But when comparing it to its historical volatility, Din Capital Investment is 1.66 times less risky than Hanoi Beer. It trades about 0.01 of its potential returns per unit of risk. Hanoi Beer Trading is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,265,801 in Hanoi Beer Trading on January 8, 2025 and sell it today you would earn a total of 2,484,199 from holding Hanoi Beer Trading or generate 109.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.58% |
| Values | Daily Returns |
Din Capital Investment vs. Hanoi Beer Trading
Performance |
| Timeline |
| Din Capital Investment |
| Hanoi Beer Trading |
Risk-Adjusted Performance
OK
Weak | Strong |
Din Capital and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and Hanoi Beer
The main advantage of trading using opposite Din Capital and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital 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.| Din Capital vs. PostTelecommunication Equipment | Din Capital vs. Saigon Beer Alcohol | Din Capital vs. Post and Telecommunications | Din Capital vs. Sao Vang Rubber |
| Hanoi Beer vs. Vien Dong Investment | Hanoi Beer vs. Pha Le Plastics | Hanoi Beer vs. Din Capital Investment | Hanoi Beer vs. Binh Minh Plastics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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