Correlation Between Post and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both Post and Hanoi 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 Post and Hanoi Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post and Telecommunications and Hanoi Beer Alcohol, you can compare the effects of market volatilities on Post and Hanoi 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 Post with a short position of Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Hanoi Beer.
Diversification Opportunities for Post and Hanoi Beer
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Post and Hanoi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol and Post 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 Post and Telecommunications are associated (or correlated) with Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of Post i.e., Post and Hanoi Beer go up and down completely randomly.
Pair Corralation between Post and Hanoi Beer
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Hanoi Beer. In addition to that, Post is 1.47 times more volatile than Hanoi Beer Alcohol. It trades about -0.04 of its total potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about 0.01 per unit of volatility. If you would invest 3,728,475 in Hanoi Beer Alcohol on September 4, 2024 and sell it today you would earn a total of 71,525 from holding Hanoi Beer Alcohol or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.39% |
| Values | Daily Returns |
Post and Telecommunications vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| Post and Telecommuni |
| Hanoi Beer Alcohol |
Post and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Hanoi Beer
The main advantage of trading using opposite Post and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Hanoi 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 Hanoi Beer will offset losses from the drop in Hanoi Beer's long position.| Post vs. Vietnam Petroleum Transport | Post vs. Da Nang Construction | Post vs. 1369 Construction JSC | Post vs. PetroVietnam Transportation Corp |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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