Correlation Between POST TELECOMMU and Sao Vang
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and Sao Vang 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 Sao Vang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Sao Vang Rubber, you can compare the effects of market volatilities on POST TELECOMMU and Sao Vang 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 Sao Vang. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Sao Vang.
Diversification Opportunities for POST TELECOMMU and Sao Vang
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between POST and Sao is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and Sao Vang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sao Vang Rubber 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 Sao Vang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sao Vang Rubber has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and Sao Vang go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Sao Vang
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 0.61 times more return on investment than Sao Vang. However, POST TELECOMMU is 1.64 times less risky than Sao Vang. It trades about 0.07 of its potential returns per unit of risk. Sao Vang Rubber is currently generating about 0.02 per unit of risk. If you would invest 2,950,000 in POST TELECOMMU on September 3, 2024 and sell it today you would earn a total of 80,000 from holding POST TELECOMMU or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
POST TELECOMMU vs. Sao Vang Rubber
Performance |
| Timeline |
| POST TELECOMMU |
| Sao Vang Rubber |
POST TELECOMMU and Sao Vang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Sao Vang
The main advantage of trading using opposite POST TELECOMMU and Sao Vang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, Sao Vang 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 Sao Vang will offset losses from the drop in Sao Vang's long position.| POST TELECOMMU vs. Century Synthetic Fiber | POST TELECOMMU vs. Telecoms Informatics JSC | POST TELECOMMU vs. Elcom Technology Communications | POST TELECOMMU vs. Petrolimex Insurance Corp |
| Sao Vang vs. FIT INVEST JSC | Sao Vang vs. Damsan JSC | Sao Vang vs. An Phat Plastic | Sao Vang 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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