Correlation Between Phuoc Hoa and Masan Group
Can any of the company-specific risk be diversified away by investing in both Phuoc Hoa and Masan Group 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 Phuoc Hoa and Masan Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phuoc Hoa Rubber and Masan Group Corp, you can compare the effects of market volatilities on Phuoc Hoa and Masan Group 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 Phuoc Hoa with a short position of Masan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phuoc Hoa and Masan Group.
Diversification Opportunities for Phuoc Hoa and Masan Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Phuoc and Masan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Phuoc Hoa Rubber and Masan Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masan Group Corp and Phuoc Hoa 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 Phuoc Hoa Rubber are associated (or correlated) with Masan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masan Group Corp has no effect on the direction of Phuoc Hoa i.e., Phuoc Hoa and Masan Group go up and down completely randomly.
Pair Corralation between Phuoc Hoa and Masan Group
If you would invest 5,630,000 in Phuoc Hoa Rubber on September 13, 2024 and sell it today you would earn a total of 250,000 from holding Phuoc Hoa Rubber or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Phuoc Hoa Rubber vs. Masan Group Corp
Performance |
| Timeline |
| Phuoc Hoa Rubber |
| Masan Group Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Phuoc Hoa and Masan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phuoc Hoa and Masan Group
The main advantage of trading using opposite Phuoc Hoa and Masan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phuoc Hoa position performs unexpectedly, Masan Group 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 Masan Group will offset losses from the drop in Masan Group's long position.| Phuoc Hoa vs. Vietnam National Reinsurance | Phuoc Hoa vs. Long An Food | Phuoc Hoa vs. Petrolimex Insurance Corp | Phuoc Hoa vs. An Phat Plastic |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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