Correlation Between Pha Lai and Techcom Vietnam
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By analyzing existing cross correlation between Pha Lai Thermal and Techcom Vietnam REIT, you can compare the effects of market volatilities on Pha Lai and Techcom Vietnam 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 Techcom Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and Techcom Vietnam.
Diversification Opportunities for Pha Lai and Techcom Vietnam
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pha and Techcom is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and Techcom Vietnam REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techcom Vietnam REIT 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 Techcom Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techcom Vietnam REIT has no effect on the direction of Pha Lai i.e., Pha Lai and Techcom Vietnam go up and down completely randomly.
Pair Corralation between Pha Lai and Techcom Vietnam
Assuming the 90 days trading horizon Pha Lai Thermal is expected to generate 0.44 times more return on investment than Techcom Vietnam. However, Pha Lai Thermal is 2.25 times less risky than Techcom Vietnam. It trades about -0.01 of its potential returns per unit of risk. Techcom Vietnam REIT is currently generating about -0.02 per unit of risk. If you would invest 1,197,142 in Pha Lai Thermal on September 4, 2024 and sell it today you would lose (87,142) from holding Pha Lai Thermal or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. Techcom Vietnam REIT
Performance |
| Timeline |
| Pha Lai Thermal |
| Techcom Vietnam REIT |
Pha Lai and Techcom Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and Techcom Vietnam
The main advantage of trading using opposite Pha Lai and Techcom Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, Techcom Vietnam 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 Techcom Vietnam will offset losses from the drop in Techcom Vietnam's long position.| Pha Lai vs. Elcom Technology Communications | Pha Lai vs. Dong Nai Plastic | Pha Lai vs. Phuoc Hoa Rubber | Pha Lai vs. Telecoms Informatics JSC |
| Techcom Vietnam vs. FIT INVEST JSC | Techcom Vietnam vs. Damsan JSC | Techcom Vietnam vs. An Phat Plastic | Techcom Vietnam vs. Alphanam ME |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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