Correlation Between POST TELECOMMU and Dong A
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Dong A 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 Dong A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Dong A Hotel, you can compare the effects of market volatilities on POST TELECOMMU and Dong A 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 Dong A. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Dong A.
Diversification Opportunities for POST TELECOMMU and Dong A
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POST and Dong is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Dong A Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dong A Hotel 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 Dong A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dong A Hotel has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Dong A go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Dong A
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 5.79 times more return on investment than Dong A. However, POST TELECOMMU is 5.79 times more volatile than Dong A Hotel. It trades about 0.05 of its potential returns per unit of risk. Dong A Hotel is currently generating about 0.08 per unit of risk. If you would invest 3,130,000 in POST TELECOMMU on September 13, 2024 and sell it today you would earn a total of 70,000 from holding POST TELECOMMU or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
POST TELECOMMU vs. Dong A Hotel
Performance |
| Timeline |
| POST TELECOMMU |
| Dong A Hotel |
POST TELECOMMU and Dong A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Dong A
The main advantage of trading using opposite POST TELECOMMU and Dong A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Dong A 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 Dong A will offset losses from the drop in Dong A's long position.| POST TELECOMMU vs. VietinBank Securities JSC | POST TELECOMMU vs. Tienlen Steel Corp | POST TELECOMMU vs. Ducgiang Chemicals Detergent | POST TELECOMMU vs. Vnsteel Vicasa JSC |
| Dong A vs. Song Hong Garment | Dong A vs. Alphanam ME | Dong A vs. Hochiminh City Metal | Dong A vs. Atesco Industrial Cartering |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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