Correlation Between Pha Lai and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Pha Lai 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 Pha Lai and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pha Lai Thermal and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Pha Lai 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 Pha Lai with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and Hanoi Beer.
Diversification Opportunities for Pha Lai and Hanoi Beer
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pha and Hanoi is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal 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 Pha Lai 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 Lai Thermal 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 Pha Lai i.e., Pha Lai and Hanoi Beer go up and down completely randomly.
Pair Corralation between Pha Lai and Hanoi Beer
Assuming the 90 days trading horizon Pha Lai Thermal is expected to generate 1.18 times more return on investment than Hanoi Beer. However, Pha Lai is 1.18 times more volatile than Hanoi Beer Alcohol. It trades about 0.03 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.01 per unit of risk. If you would invest 986,722 in Pha Lai Thermal on September 14, 2024 and sell it today you would earn a total of 153,278 from holding Pha Lai Thermal or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.28% |
| Values | Daily Returns |
Pha Lai Thermal vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Pha Lai Thermal |
| Hanoi Beer Alcohol |
Pha Lai and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and Hanoi Beer
The main advantage of trading using opposite Pha Lai and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai 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.| Pha Lai vs. Transport and Industry | Pha Lai vs. PetroVietnam Transportation Corp | Pha Lai vs. Song Hong Aluminum | Pha Lai vs. VTC Telecommunications JSC |
| Hanoi Beer vs. Pha Lai Thermal | Hanoi Beer vs. Southern Rubber Industry | Hanoi Beer vs. Vietnam Airlines JSC | Hanoi Beer vs. BaoMinh 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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