Correlation Between Saigon Beer and Post
Can any of the company-specific risk be diversified away by investing in both Saigon Beer and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Saigon Beer and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and Post.
Diversification Opportunities for Saigon Beer and Post
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saigon and Post is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Saigon Beer i.e., Saigon Beer and Post go up and down completely randomly.
Pair Corralation between Saigon Beer and Post
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to generate 0.32 times more return on investment than Post. However, Saigon Beer Alcohol is 3.08 times less risky than Post. It trades about 0.08 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.0 per unit of risk. If you would invest 5,530,000 in Saigon Beer Alcohol on September 2, 2024 and sell it today you would earn a total of 80,000 from holding Saigon Beer Alcohol or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. Post and Telecommunications
Performance |
| Timeline |
| Saigon Beer Alcohol |
| Post and Telecommuni |
Saigon Beer and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and Post
The main advantage of trading using opposite Saigon Beer and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Saigon Beer vs. HUD1 Investment and | Saigon Beer vs. LDG Investment JSC | Saigon Beer vs. Pha Lai Thermal | Saigon Beer vs. Dinhvu Port Investment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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