Correlation Between Pha Lai and HNX 30
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By analyzing existing cross correlation between Pha Lai Thermal and HNX 30, you can compare the effects of market volatilities on Pha Lai and HNX 30 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 HNX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and HNX 30.
Diversification Opportunities for Pha Lai and HNX 30
Very weak diversification
The 3 months correlation between Pha and HNX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and HNX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX 30 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 HNX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX 30 has no effect on the direction of Pha Lai i.e., Pha Lai and HNX 30 go up and down completely randomly.
Pair Corralation between Pha Lai and HNX 30
Assuming the 90 days trading horizon Pha Lai is expected to generate 2.98 times less return on investment than HNX 30. But when comparing it to its historical volatility, Pha Lai Thermal is 1.06 times less risky than HNX 30. It trades about 0.02 of its potential returns per unit of risk. HNX 30 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 35,554 in HNX 30 on September 2, 2024 and sell it today you would earn a total of 12,425 from holding HNX 30 or generate 34.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Pha Lai Thermal vs. HNX 30
Performance |
| Timeline |
Pha Lai and HNX 30 Volatility Contrast
Predicted Return Density |
| Returns |
Pha Lai Thermal
Pair trading matchups for Pha Lai
HNX 30
Pair trading matchups for HNX 30
Pair Trading with Pha Lai and HNX 30
The main advantage of trading using opposite Pha Lai and HNX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, HNX 30 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 HNX 30 will offset losses from the drop in HNX 30's long position.The idea behind Pha Lai Thermal and HNX 30 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.| HNX 30 vs. Hai An Transport | HNX 30 vs. Pha Lai Thermal | HNX 30 vs. PetroVietnam Transportation Corp | HNX 30 vs. Petrolimex Information Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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