Correlation Between Post and Dinhvu Port
Can any of the company-specific risk be diversified away by investing in both Post and Dinhvu Port 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 Dinhvu Port 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 Dinhvu Port Investment, you can compare the effects of market volatilities on Post and Dinhvu Port 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 Dinhvu Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Dinhvu Port.
Diversification Opportunities for Post and Dinhvu Port
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Post and Dinhvu is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Dinhvu Port Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dinhvu Port Investment 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 Dinhvu Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dinhvu Port Investment has no effect on the direction of Post i.e., Post and Dinhvu Port go up and down completely randomly.
Pair Corralation between Post and Dinhvu Port
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Dinhvu Port. In addition to that, Post is 3.75 times more volatile than Dinhvu Port Investment. It trades about -0.06 of its total potential returns per unit of risk. Dinhvu Port Investment is currently generating about 0.28 per unit of volatility. If you would invest 8,160,000 in Dinhvu Port Investment on October 31, 2024 and sell it today you would earn a total of 340,000 from holding Dinhvu Port Investment or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Dinhvu Port Investment
Performance |
| Timeline |
| Post and Telecommuni |
| Dinhvu Port Investment |
Post and Dinhvu Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Dinhvu Port
The main advantage of trading using opposite Post and Dinhvu Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Dinhvu Port 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 Dinhvu Port will offset losses from the drop in Dinhvu Port's long position.| Post vs. Elcom Technology Communications | Post vs. South Basic Chemicals | Post vs. Petrolimex Petrochemical JSC | Post vs. Petrolimex Information Technology |
| Dinhvu Port vs. Tin Nghia Industrial | Dinhvu Port vs. Hochiminh City Metal | Dinhvu Port vs. Industrial Urban Development | Dinhvu Port vs. Saigon Beer Alcohol |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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