Correlation Between Pha Le and KSD
Can any of the company-specific risk be diversified away by investing in both Pha Le and KSD 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 KSD 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 KSD, you can compare the effects of market volatilities on Pha Le and KSD 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 KSD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Le and KSD.
Diversification Opportunities for Pha Le and KSD
Pay attention - limited upside
The 3 months correlation between Pha and KSD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pha Le Plastics and KSD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSD 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 KSD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSD has no effect on the direction of Pha Le i.e., Pha Le and KSD go up and down completely randomly.
Pair Corralation between Pha Le and KSD
If you would invest 447,000 in Pha Le Plastics on September 13, 2024 and sell it today you would earn a total of 21,000 from holding Pha Le Plastics or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pha Le Plastics vs. KSD
Performance |
| Timeline |
| Pha Le Plastics |
| KSD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pha Le and KSD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Le and KSD
The main advantage of trading using opposite Pha Le and KSD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Le position performs unexpectedly, KSD 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 KSD will offset losses from the drop in KSD's long position.The idea behind Pha Le Plastics and KSD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KSD vs. Transport and Industry | KSD vs. Vietnam Petroleum Transport | KSD vs. Vinhomes JSC | KSD vs. Hai An Transport |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |