Correlation Between Post and Pha Le
Can any of the company-specific risk be diversified away by investing in both Post and Pha Le 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 Pha Le 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 Pha Le Plastics, you can compare the effects of market volatilities on Post and Pha Le 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 Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Pha Le.
Diversification Opportunities for Post and Pha Le
Excellent diversification
The 3 months correlation between Post and Pha is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications and Pha Le Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Le Plastics 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 Pha Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Le Plastics has no effect on the direction of Post i.e., Post and Pha Le go up and down completely randomly.
Pair Corralation between Post and Pha Le
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Pha Le. In addition to that, Post is 1.02 times more volatile than Pha Le Plastics. It trades about -0.09 of its total potential returns per unit of risk. Pha Le Plastics is currently generating about 0.25 per unit of volatility. If you would invest 450,000 in Pha Le Plastics on October 24, 2024 and sell it today you would earn a total of 48,000 from holding Pha Le Plastics or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Pha Le Plastics
Performance |
| Timeline |
| Post and Telecommuni |
| Pha Le Plastics |
Post and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Pha Le
The main advantage of trading using opposite Post and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post position performs unexpectedly, Pha Le 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 Pha Le will offset losses from the drop in Pha Le's long position.| Post vs. MST Investment JSC | Post vs. Ducgiang Chemicals Detergent | Post vs. Sea Air Freight | Post vs. Sao Ta Foods |
| Pha Le vs. Post and Telecommunications | Pha Le vs. BaoMinh Insurance Corp | Pha Le vs. Bao Ngoc Investment | Pha Le vs. Elcom Technology Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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