Correlation Between Pha Lai and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Pha Lai and Saigon 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 Saigon 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 Saigon Beer Alcohol, you can compare the effects of market volatilities on Pha Lai and Saigon 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 Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and Saigon Beer.
Diversification Opportunities for Pha Lai and Saigon Beer
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pha and Saigon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon 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 Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Pha Lai i.e., Pha Lai and Saigon Beer go up and down completely randomly.
Pair Corralation between Pha Lai and Saigon Beer
Assuming the 90 days trading horizon Pha Lai Thermal is expected to generate 1.06 times more return on investment than Saigon Beer. However, Pha Lai is 1.06 times more volatile than Saigon Beer Alcohol. It trades about 0.01 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.05 per unit of risk. If you would invest 1,091,456 in Pha Lai Thermal on October 25, 2024 and sell it today you would earn a total of 38,544 from holding Pha Lai Thermal or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Pha Lai Thermal |
| Saigon Beer Alcohol |
Pha Lai and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and Saigon Beer
The main advantage of trading using opposite Pha Lai and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, Saigon 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| Pha Lai vs. Post and Telecommunications | Pha Lai vs. Saigon Telecommunication Technologies | Pha Lai vs. Phuoc Hoa Rubber | Pha Lai vs. Tay Ninh Rubber |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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