Correlation Between PC3 Investment and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both PC3 Investment 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 PC3 Investment and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PC3 Investment JSC and Hanoi Beer Alcohol, you can compare the effects of market volatilities on PC3 Investment 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 PC3 Investment with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of PC3 Investment and Hanoi Beer.
Diversification Opportunities for PC3 Investment and Hanoi Beer
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between PC3 and Hanoi is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PC3 Investment JSC and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and PC3 Investment 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 PC3 Investment JSC 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 Alcohol has no effect on the direction of PC3 Investment i.e., PC3 Investment and Hanoi Beer go up and down completely randomly.
Pair Corralation between PC3 Investment and Hanoi Beer
Assuming the 90 days trading horizon PC3 Investment JSC is expected to under-perform the Hanoi Beer. In addition to that, PC3 Investment is 1.56 times more volatile than Hanoi Beer Alcohol. It trades about -0.07 of its total potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.06 per unit of volatility. If you would invest 3,805,000 in Hanoi Beer Alcohol on October 29, 2024 and sell it today you would lose (105,000) from holding Hanoi Beer Alcohol or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.57% |
| Values | Daily Returns |
PC3 Investment JSC vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| PC3 Investment JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Hanoi Beer Alcohol |
PC3 Investment and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PC3 Investment and Hanoi Beer
The main advantage of trading using opposite PC3 Investment and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PC3 Investment 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.| PC3 Investment vs. FIT INVEST JSC | PC3 Investment vs. Damsan JSC | PC3 Investment vs. An Phat Plastic | PC3 Investment vs. APG Securities Joint |
| Hanoi Beer vs. Japan Vietnam Medical | Hanoi Beer vs. Danang Education Investment | Hanoi Beer vs. Vu Dang Investment | Hanoi Beer vs. PetroVietnam Drilling Well |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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