Correlation Between POST TELECOMMU and Danang Rubber
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Danang Rubber 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 Danang Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Danang Rubber JSC, you can compare the effects of market volatilities on POST TELECOMMU and Danang Rubber 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 Danang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Danang Rubber.
Diversification Opportunities for POST TELECOMMU and Danang Rubber
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POST and Danang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Danang Rubber JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danang Rubber JSC 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 Danang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danang Rubber JSC has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Danang Rubber go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Danang Rubber
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 0.88 times more return on investment than Danang Rubber. However, POST TELECOMMU is 1.14 times less risky than Danang Rubber. It trades about 0.47 of its potential returns per unit of risk. Danang Rubber JSC is currently generating about 0.14 per unit of risk. If you would invest 2,210,000 in POST TELECOMMU on November 29, 2024 and sell it today you would earn a total of 190,000 from holding POST TELECOMMU or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POST TELECOMMU vs. Danang Rubber JSC
Performance |
| Timeline |
| POST TELECOMMU |
| Danang Rubber JSC |
POST TELECOMMU and Danang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Danang Rubber
The main advantage of trading using opposite POST TELECOMMU and Danang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Danang Rubber 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 Danang Rubber will offset losses from the drop in Danang Rubber's long position.| POST TELECOMMU vs. Vietnam Technological And | POST TELECOMMU vs. VTC Telecommunications JSC | POST TELECOMMU vs. Post and Telecommunications | POST TELECOMMU vs. BIDV Insurance Corp |
| Danang Rubber vs. HVC Investment and | Danang Rubber vs. Vien Dong Investment | Danang Rubber vs. Asia Pacific Investment | Danang Rubber vs. Binh Duong Trade |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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