Correlation Between POST TELECOMMU and Tien Phong
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Tien Phong 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 Tien Phong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Tien Phong Plastic, you can compare the effects of market volatilities on POST TELECOMMU and Tien Phong 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 Tien Phong. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Tien Phong.
Diversification Opportunities for POST TELECOMMU and Tien Phong
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between POST and Tien is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Tien Phong Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Phong Plastic 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 Tien Phong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Phong Plastic has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Tien Phong go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Tien Phong
Assuming the 90 days trading horizon POST TELECOMMU is expected to under-perform the Tien Phong. In addition to that, POST TELECOMMU is 1.3 times more volatile than Tien Phong Plastic. It trades about -0.06 of its total potential returns per unit of risk. Tien Phong Plastic is currently generating about 0.1 per unit of volatility. If you would invest 3,333,339 in Tien Phong Plastic on September 2, 2024 and sell it today you would earn a total of 2,686,661 from holding Tien Phong Plastic or generate 80.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.02% |
| Values | Daily Returns |
POST TELECOMMU vs. Tien Phong Plastic
Performance |
| Timeline |
| POST TELECOMMU |
| Tien Phong Plastic |
POST TELECOMMU and Tien Phong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Tien Phong
The main advantage of trading using opposite POST TELECOMMU and Tien Phong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Tien Phong 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 Tien Phong will offset losses from the drop in Tien Phong's long position.| POST TELECOMMU vs. FIT INVEST JSC | POST TELECOMMU vs. Damsan JSC | POST TELECOMMU vs. An Phat Plastic | POST TELECOMMU vs. Alphanam ME |
| Tien Phong vs. FIT INVEST JSC | Tien Phong vs. Damsan JSC | Tien Phong vs. An Phat Plastic | Tien Phong vs. Alphanam ME |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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