Correlation Between POST TELECOMMU and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Thanh Dat 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 Thanh Dat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Thanh Dat Investment, you can compare the effects of market volatilities on POST TELECOMMU and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Thanh Dat.
Diversification Opportunities for POST TELECOMMU and Thanh Dat
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between POST and Thanh is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Thanh Dat go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Thanh Dat
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 1.64 times more return on investment than Thanh Dat. However, POST TELECOMMU is 1.64 times more volatile than Thanh Dat Investment. It trades about 0.21 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about -0.16 per unit of risk. If you would invest 3,200,000 in POST TELECOMMU on October 11, 2024 and sell it today you would earn a total of 390,000 from holding POST TELECOMMU or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POST TELECOMMU vs. Thanh Dat Investment
Performance |
| Timeline |
| POST TELECOMMU |
| Thanh Dat Investment |
POST TELECOMMU and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Thanh Dat
The main advantage of trading using opposite POST TELECOMMU and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| POST TELECOMMU vs. DOMESCO Medical Import | POST TELECOMMU vs. PVI Reinsurance Corp | POST TELECOMMU vs. Southern Rubber Industry | POST TELECOMMU vs. Picomat Plastic JSC |
| Thanh Dat vs. Kien Giang Construction | Thanh Dat vs. BIDV Insurance Corp | Thanh Dat vs. Vietnam National Reinsurance | Thanh Dat vs. Development Investment Construction |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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