Correlation Between POST TELECOMMU and Phat Dat
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Phat 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 Phat 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 Phat Dat Real, you can compare the effects of market volatilities on POST TELECOMMU and Phat 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 Phat Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Phat Dat.
Diversification Opportunities for POST TELECOMMU and Phat Dat
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between POST and Phat is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Phat Dat Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phat Dat Real 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 Phat Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phat Dat Real has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Phat Dat go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Phat Dat
Assuming the 90 days trading horizon POST TELECOMMU is expected to under-perform the Phat Dat. In addition to that, POST TELECOMMU is 1.53 times more volatile than Phat Dat Real. It trades about -0.03 of its total potential returns per unit of risk. Phat Dat Real is currently generating about -0.02 per unit of volatility. If you would invest 2,511,597 in Phat Dat Real on September 4, 2024 and sell it today you would lose (426,597) from holding Phat Dat Real or give up 16.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.61% |
| Values | Daily Returns |
POST TELECOMMU vs. Phat Dat Real
Performance |
| Timeline |
| POST TELECOMMU |
| Phat Dat Real |
POST TELECOMMU and Phat Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Phat Dat
The main advantage of trading using opposite POST TELECOMMU and Phat Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Phat 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 Phat Dat will offset losses from the drop in Phat Dat'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 |
| Phat Dat vs. DIC Holdings Construction | Phat Dat vs. Viettel Construction JSC | Phat Dat vs. Da Nang Construction | Phat Dat vs. Vinhomes 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |