Correlation Between Saigon Beer and Ha Long
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Ha Long 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 Saigon Beer and Ha Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Beer Alcohol and Ha Long Investment, you can compare the effects of market volatilities on Saigon Beer and Ha Long 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 Saigon Beer with a short position of Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Ha Long.
Diversification Opportunities for Saigon Beer and Ha Long
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and HID is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Ha Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Long Investment and Saigon Beer 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 Saigon Beer Alcohol are associated (or correlated) with Ha Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Long Investment has no effect on the direction of Saigon Beer i.e., Saigon Beer and Ha Long go up and down completely randomly.
Pair Corralation between Saigon Beer and Ha Long
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 1.21 times more return on investment than Ha Long. However, Saigon Beer is 1.21 times more volatile than Ha Long Investment. It trades about -0.05 of its potential returns per unit of risk. Ha Long Investment is currently generating about -0.26 per unit of risk. If you would invest 5,590,000 in Saigon Beer Alcohol on August 25, 2024 and sell it today you would lose (50,000) from holding Saigon Beer Alcohol or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Ha Long Investment
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Ha Long Investment |
Saigon Beer and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Ha Long
The main advantage of trading using opposite Saigon Beer and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Ha Long 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 Ha Long will offset losses from the drop in Ha Long's long position.| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer vs. APG Securities Joint |
| Ha Long vs. Saigon Beer Alcohol | Ha Long vs. Innovative Technology Development | Ha Long vs. Vinhomes JSC | Ha Long vs. Petrovietnam Drilling Mud |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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