Correlation Between POST TELECOMMU and Pha Lai
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Pha Lai 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 Pha Lai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Pha Lai Thermal, you can compare the effects of market volatilities on POST TELECOMMU and Pha Lai 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 Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Pha Lai.
Diversification Opportunities for POST TELECOMMU and Pha Lai
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between POST and Pha is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Pha Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Pha Lai go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Pha Lai
Assuming the 90 days trading horizon POST TELECOMMU is expected to under-perform the Pha Lai. In addition to that, POST TELECOMMU is 2.14 times more volatile than Pha Lai Thermal. It trades about -0.06 of its total potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.01 per unit of volatility. If you would invest 1,201,242 in Pha Lai Thermal on September 2, 2024 and sell it today you would lose (96,242) from holding Pha Lai Thermal or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.65% |
| Values | Daily Returns |
POST TELECOMMU vs. Pha Lai Thermal
Performance |
| Timeline |
| POST TELECOMMU |
| Pha Lai Thermal |
POST TELECOMMU and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Pha Lai
The main advantage of trading using opposite POST TELECOMMU and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Pha Lai 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 Pha Lai will offset losses from the drop in Pha Lai'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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