Correlation Between Pha Le and Telecoms Informatics
Can any of the company-specific risk be diversified away by investing in both Pha Le and Telecoms Informatics 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 Pha Le and Telecoms Informatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pha Le Plastics and Telecoms Informatics JSC, you can compare the effects of market volatilities on Pha Le and Telecoms Informatics 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 Pha Le with a short position of Telecoms Informatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Le and Telecoms Informatics.
Diversification Opportunities for Pha Le and Telecoms Informatics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pha and Telecoms is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pha Le Plastics and Telecoms Informatics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecoms Informatics JSC and Pha Le 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 Pha Le Plastics are associated (or correlated) with Telecoms Informatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecoms Informatics JSC has no effect on the direction of Pha Le i.e., Pha Le and Telecoms Informatics go up and down completely randomly.
Pair Corralation between Pha Le and Telecoms Informatics
Assuming the 90 days trading horizon Pha Le Plastics is expected to under-perform the Telecoms Informatics. But the stock apears to be less risky and, when comparing its historical volatility, Pha Le Plastics is 1.17 times less risky than Telecoms Informatics. The stock trades about -0.06 of its potential returns per unit of risk. The Telecoms Informatics JSC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,355,000 in Telecoms Informatics JSC on December 24, 2024 and sell it today you would earn a total of 20,000 from holding Telecoms Informatics JSC or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Pha Le Plastics vs. Telecoms Informatics JSC
Performance |
| Timeline |
| Pha Le Plastics |
| Telecoms Informatics JSC |
Pha Le and Telecoms Informatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Le and Telecoms Informatics
The main advantage of trading using opposite Pha Le and Telecoms Informatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Le position performs unexpectedly, Telecoms Informatics 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 Telecoms Informatics will offset losses from the drop in Telecoms Informatics' long position.| Pha Le vs. FPT Digital Retail | Pha Le vs. Vincom Retail JSC | Pha Le vs. Fecon Mining JSC | Pha Le vs. Pacific Petroleum Transportation |
| Telecoms Informatics vs. VietinBank Securities JSC | Telecoms Informatics vs. Petrolimex Insurance Corp | Telecoms Informatics vs. Century Synthetic Fiber | Telecoms Informatics vs. BIDV Insurance Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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