Correlation Between POST TELECOMMU and An Phat
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and An Phat 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 TELECOMMU and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and An Phat Holdings, you can compare the effects of market volatilities on POST TELECOMMU and An Phat 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 TELECOMMU with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and An Phat.
Diversification Opportunities for POST TELECOMMU and An Phat
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between POST and APH is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and An Phat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Holdings and POST TELECOMMU 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 TELECOMMU are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Holdings has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and An Phat go up and down completely randomly.
Pair Corralation between POST TELECOMMU and An Phat
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 1.51 times more return on investment than An Phat. However, POST TELECOMMU is 1.51 times more volatile than An Phat Holdings. It trades about 0.03 of its potential returns per unit of risk. An Phat Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,133,331 in POST TELECOMMU on November 2, 2024 and sell it today you would earn a total of 76,669 from holding POST TELECOMMU or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.41% |
| Values | Daily Returns |
POST TELECOMMU vs. An Phat Holdings
Performance |
| Timeline |
| POST TELECOMMU |
| An Phat Holdings |
POST TELECOMMU and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and An Phat
The main advantage of trading using opposite POST TELECOMMU and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| POST TELECOMMU vs. Tng Investment And | POST TELECOMMU vs. PV2 Investment JSC | POST TELECOMMU vs. Vina2 Investment and | POST TELECOMMU vs. Tien Giang Investment |
| An Phat vs. Danang Education Investment | An Phat vs. Sao Ta Foods | An Phat vs. Long An Food | An Phat vs. LDG Investment JSC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |