Correlation Between Saigon Beer and Pha Lai
Can any of the company-specific risk be diversified away by investing in both Saigon Beer 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 Saigon Beer and Pha Lai 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 Pha Lai Thermal, you can compare the effects of market volatilities on Saigon Beer 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 Saigon Beer with a short position of Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Pha Lai.
Diversification Opportunities for Saigon Beer and Pha Lai
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saigon and Pha is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol 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 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 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 Saigon Beer i.e., Saigon Beer and Pha Lai go up and down completely randomly.
Pair Corralation between Saigon Beer and Pha Lai
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 0.72 times more return on investment than Pha Lai. However, Saigon Beer Alcohol is 1.38 times less risky than Pha Lai. It trades about -0.09 of its potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.12 per unit of risk. If you would invest 6,569,187 in Saigon Beer Alcohol on September 5, 2024 and sell it today you would lose (949,187) from holding Saigon Beer Alcohol or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Pha Lai Thermal
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Pha Lai Thermal |
Saigon Beer and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Pha Lai
The main advantage of trading using opposite Saigon Beer and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer 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.| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer vs. Alphanam ME |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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