Correlation Between Pha Lai and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Pha Lai and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on Pha Lai and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and POST TELECOMMU.
Diversification Opportunities for Pha Lai and POST TELECOMMU
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pha and POST is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Pha Lai i.e., Pha Lai and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Pha Lai and POST TELECOMMU
Assuming the 90 days trading horizon Pha Lai is expected to generate 2.64 times less return on investment than POST TELECOMMU. In addition to that, Pha Lai is 1.19 times more volatile than POST TELECOMMU. It trades about 0.15 of its total potential returns per unit of risk. POST TELECOMMU is currently generating about 0.47 per unit of volatility. If you would invest 2,210,000 in POST TELECOMMU on November 29, 2024 and sell it today you would earn a total of 190,000 from holding POST TELECOMMU or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. POST TELECOMMU
Performance |
| Timeline |
| Pha Lai Thermal |
| POST TELECOMMU |
Pha Lai and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and POST TELECOMMU
The main advantage of trading using opposite Pha Lai and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| Pha Lai vs. Innovative Technology Development | Pha Lai vs. Transport and Industry | Pha Lai vs. Petrovietnam Technical Services | Pha Lai vs. Saigon Telecommunication Technologies |
| POST TELECOMMU vs. Vietnam Technological And | POST TELECOMMU vs. VTC Telecommunications JSC | POST TELECOMMU vs. Post and Telecommunications | POST TELECOMMU 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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