Correlation Between Hung Hau and Dinhvu Port
Can any of the company-specific risk be diversified away by investing in both Hung Hau and Dinhvu Port 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 Hung Hau and Dinhvu Port into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hung Hau Agricultural and Dinhvu Port Investment, you can compare the effects of market volatilities on Hung Hau and Dinhvu Port 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 Hung Hau with a short position of Dinhvu Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hung Hau and Dinhvu Port.
Diversification Opportunities for Hung Hau and Dinhvu Port
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hung and Dinhvu is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hung Hau Agricultural and Dinhvu Port Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dinhvu Port Investment and Hung Hau 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 Hung Hau Agricultural are associated (or correlated) with Dinhvu Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dinhvu Port Investment has no effect on the direction of Hung Hau i.e., Hung Hau and Dinhvu Port go up and down completely randomly.
Pair Corralation between Hung Hau and Dinhvu Port
Assuming the 90 days trading horizon Hung Hau Agricultural is expected to generate 4.04 times more return on investment than Dinhvu Port. However, Hung Hau is 4.04 times more volatile than Dinhvu Port Investment. It trades about 0.2 of its potential returns per unit of risk. Dinhvu Port Investment is currently generating about -0.11 per unit of risk. If you would invest 980,000 in Hung Hau Agricultural on September 2, 2024 and sell it today you would earn a total of 70,000 from holding Hung Hau Agricultural or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Hung Hau Agricultural vs. Dinhvu Port Investment
Performance |
| Timeline |
| Hung Hau Agricultural |
| Dinhvu Port Investment |
Hung Hau and Dinhvu Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hung Hau and Dinhvu Port
The main advantage of trading using opposite Hung Hau and Dinhvu Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hung Hau position performs unexpectedly, Dinhvu Port 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 Dinhvu Port will offset losses from the drop in Dinhvu Port's long position.| Hung Hau vs. Song Hong Garment | Hung Hau vs. Alphanam ME | Hung Hau vs. Hochiminh City Metal | Hung Hau vs. Atesco Industrial Cartering |
| Dinhvu Port vs. FIT INVEST JSC | Dinhvu Port vs. Damsan JSC | Dinhvu Port vs. An Phat Plastic | Dinhvu Port 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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