Correlation Between Post and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Post and Hanoi Plastics 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 Plastics 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 Plastics JSC, you can compare the effects of market volatilities on Post and Hanoi Plastics 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 Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Hanoi Plastics.
Diversification Opportunities for Post and Hanoi Plastics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Post and Hanoi is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics JSC 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 Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Post i.e., Post and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Post and Hanoi Plastics
Assuming the 90 days trading horizon Post and Telecommunications is expected to generate 1.21 times more return on investment than Hanoi Plastics. However, Post is 1.21 times more volatile than Hanoi Plastics JSC. It trades about 0.02 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about 0.0 per unit of risk. If you would invest 501,000 in Post and Telecommunications on January 12, 2025 and sell it today you would earn a total of 63,000 from holding Post and Telecommunications or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Post and Telecommuni |
| Hanoi Plastics JSC |
Post and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Hanoi Plastics
The main advantage of trading using opposite Post and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Hanoi Plastics 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 Plastics will offset losses from the drop in Hanoi Plastics' long position.| Post vs. Vietnam National Reinsurance | Post vs. Hanoi Plastics JSC | Post vs. Southern Rubber Industry | Post vs. Petrolimex Information Technology |
| Hanoi Plastics vs. Mobile World Investment | Hanoi Plastics vs. Binhthuan Agriculture Services | Hanoi Plastics vs. SCG Construction JSC | Hanoi Plastics vs. Tri Viet Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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