Correlation Between Post and Song Hong
Can any of the company-specific risk be diversified away by investing in both Post and Song Hong 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 Song Hong 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 Song Hong Garment, you can compare the effects of market volatilities on Post and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Song Hong.
Diversification Opportunities for Post and Song Hong
Good diversification
The 3 months correlation between Post and Song is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Song Hong Garment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Garment 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Garment has no effect on the direction of Post i.e., Post and Song Hong go up and down completely randomly.
Pair Corralation between Post and Song Hong
Assuming the 90 days trading horizon Post is expected to generate 18.68 times less return on investment than Song Hong. In addition to that, Post is 1.87 times more volatile than Song Hong Garment. It trades about 0.01 of its total potential returns per unit of risk. Song Hong Garment is currently generating about 0.47 per unit of volatility. If you would invest 4,565,000 in Song Hong Garment on August 27, 2024 and sell it today you would earn a total of 725,000 from holding Song Hong Garment or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Song Hong Garment
Performance |
| Timeline |
| Post and Telecommuni |
| Song Hong Garment |
Post and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Song Hong
The main advantage of trading using opposite Post and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.The idea behind Post and Telecommunications and Song Hong Garment 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.| Song Hong vs. Post and Telecommunications | Song Hong vs. Vina2 Investment and | Song Hong vs. Vu Dang Investment | Song Hong vs. Ha Long Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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