Correlation Between Post and Kinh Bac
Can any of the company-specific risk be diversified away by investing in both Post and Kinh Bac 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 Kinh Bac 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 Kinh Bac City, you can compare the effects of market volatilities on Post and Kinh Bac 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 Kinh Bac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Kinh Bac.
Diversification Opportunities for Post and Kinh Bac
Very good diversification
The 3 months correlation between Post and Kinh is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Kinh Bac City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinh Bac City 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 Kinh Bac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinh Bac City has no effect on the direction of Post i.e., Post and Kinh Bac go up and down completely randomly.
Pair Corralation between Post and Kinh Bac
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Kinh Bac. In addition to that, Post is 1.04 times more volatile than Kinh Bac City. It trades about -0.03 of its total potential returns per unit of risk. Kinh Bac City is currently generating about -0.01 per unit of volatility. If you would invest 3,110,000 in Kinh Bac City on August 26, 2024 and sell it today you would lose (240,000) from holding Kinh Bac City or give up 7.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Kinh Bac City
Performance |
| Timeline |
| Post and Telecommuni |
| Kinh Bac City |
Post and Kinh Bac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Kinh Bac
The main advantage of trading using opposite Post and Kinh Bac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Kinh Bac 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 Kinh Bac will offset losses from the drop in Kinh Bac's long position.The idea behind Post and Telecommunications and Kinh Bac City pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Kinh Bac vs. Post and Telecommunications | Kinh Bac vs. Vietnam National Reinsurance | Kinh Bac vs. Innovative Technology Development | Kinh Bac 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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