Correlation Between Pha Lai and Thu Duc
Can any of the company-specific risk be diversified away by investing in both Pha Lai and Thu Duc 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 Thu Duc 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 Thu Duc TradingImport, you can compare the effects of market volatilities on Pha Lai and Thu Duc 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 Thu Duc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pha Lai and Thu Duc.
Diversification Opportunities for Pha Lai and Thu Duc
Very weak diversification
The 3 months correlation between Pha and Thu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Pha Lai Thermal and Thu Duc TradingImport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thu Duc TradingImport 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 Thu Duc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thu Duc TradingImport has no effect on the direction of Pha Lai i.e., Pha Lai and Thu Duc go up and down completely randomly.
Pair Corralation between Pha Lai and Thu Duc
Assuming the 90 days trading horizon Pha Lai Thermal is expected to generate 0.23 times more return on investment than Thu Duc. However, Pha Lai Thermal is 4.38 times less risky than Thu Duc. It trades about 0.08 of its potential returns per unit of risk. Thu Duc TradingImport is currently generating about -0.35 per unit of risk. If you would invest 1,120,000 in Pha Lai Thermal on October 30, 2024 and sell it today you would earn a total of 10,000 from holding Pha Lai Thermal or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Pha Lai Thermal vs. Thu Duc TradingImport
Performance |
| Timeline |
| Pha Lai Thermal |
| Thu Duc TradingImport |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pha Lai and Thu Duc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pha Lai and Thu Duc
The main advantage of trading using opposite Pha Lai and Thu Duc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pha Lai position performs unexpectedly, Thu Duc 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 Thu Duc will offset losses from the drop in Thu Duc's long position.| Pha Lai vs. Military Insurance Corp | Pha Lai vs. Elcom Technology Communications | Pha Lai vs. BaoMinh Insurance Corp | Pha Lai vs. PVI Reinsurance Corp |
| Thu Duc vs. Ba Ria Thermal | Thu Duc vs. CEO Group JSC | Thu Duc vs. Pha Le Plastics | Thu Duc vs. Tay Ninh Rubber |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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