Correlation Between Phuoc Hoa and Saigon Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Phuoc Hoa and Saigon Telecommunicatio 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 Saigon Telecommunicatio 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 Saigon Telecommunication Technologies, you can compare the effects of market volatilities on Phuoc Hoa and Saigon Telecommunicatio 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 Saigon Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phuoc Hoa and Saigon Telecommunicatio.
Diversification Opportunities for Phuoc Hoa and Saigon Telecommunicatio
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phuoc and Saigon is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Phuoc Hoa Rubber and Saigon Telecommunication Techn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Telecommunicatio 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 Saigon Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Telecommunicatio has no effect on the direction of Phuoc Hoa i.e., Phuoc Hoa and Saigon Telecommunicatio go up and down completely randomly.
Pair Corralation between Phuoc Hoa and Saigon Telecommunicatio
Assuming the 90 days trading horizon Phuoc Hoa Rubber is expected to generate 0.79 times more return on investment than Saigon Telecommunicatio. However, Phuoc Hoa Rubber is 1.27 times less risky than Saigon Telecommunicatio. It trades about -0.01 of its potential returns per unit of risk. Saigon Telecommunication Technologies is currently generating about -0.05 per unit of risk. If you would invest 5,620,000 in Phuoc Hoa Rubber on August 24, 2024 and sell it today you would lose (30,000) from holding Phuoc Hoa Rubber or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phuoc Hoa Rubber vs. Saigon Telecommunication Techn
Performance |
| Timeline |
| Phuoc Hoa Rubber |
| Saigon Telecommunicatio |
Phuoc Hoa and Saigon Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phuoc Hoa and Saigon Telecommunicatio
The main advantage of trading using opposite Phuoc Hoa and Saigon Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phuoc Hoa position performs unexpectedly, Saigon Telecommunicatio 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 Saigon Telecommunicatio will offset losses from the drop in Saigon Telecommunicatio's long position.| Phuoc Hoa vs. FIT INVEST JSC | Phuoc Hoa vs. Damsan JSC | Phuoc Hoa vs. An Phat Plastic | Phuoc Hoa vs. APG Securities Joint |
| Saigon Telecommunicatio vs. FIT INVEST JSC | Saigon Telecommunicatio vs. Damsan JSC | Saigon Telecommunicatio vs. An Phat Plastic | Saigon Telecommunicatio vs. APG Securities Joint |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |