Correlation Between Phuoc Hoa and Post
Can any of the company-specific risk be diversified away by investing in both Phuoc Hoa 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 Phuoc Hoa and Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Phuoc Hoa 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 Phuoc Hoa with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phuoc Hoa and Post.
Diversification Opportunities for Phuoc Hoa and Post
Poor diversification
The 3 months correlation between Phuoc and Post is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Phuoc Hoa Rubber 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 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 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 Phuoc Hoa i.e., Phuoc Hoa and Post go up and down completely randomly.
Pair Corralation between Phuoc Hoa and Post
Assuming the 90 days trading horizon Phuoc Hoa is expected to generate 3.11 times less return on investment than Post. But when comparing it to its historical volatility, Phuoc Hoa Rubber is 1.98 times less risky than Post. It trades about 0.13 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 420,000 in Post and Telecommunications on November 8, 2024 and sell it today you would earn a total of 39,000 from holding Post and Telecommunications or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phuoc Hoa Rubber vs. Post and Telecommunications
Performance |
| Timeline |
| Phuoc Hoa Rubber |
| Post and Telecommuni |
Phuoc Hoa and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phuoc Hoa and Post
The main advantage of trading using opposite Phuoc Hoa and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phuoc Hoa 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.| Phuoc Hoa vs. Vincom Retail JSC | Phuoc Hoa vs. Japan Vietnam Medical | Phuoc Hoa vs. Elcom Technology Communications | Phuoc Hoa vs. VietinBank Securities JSC |
| Post vs. Nafoods Group JSC | Post vs. South Basic Chemicals | Post vs. Hochiminh City Metal | Post vs. Agriculture Printing and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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