Correlation Between Thong Nhat and Hai An
Can any of the company-specific risk be diversified away by investing in both Thong Nhat and Hai An 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 Thong Nhat and Hai An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thong Nhat Rubber and Hai An Transport, you can compare the effects of market volatilities on Thong Nhat and Hai An 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 Thong Nhat with a short position of Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thong Nhat and Hai An.
Diversification Opportunities for Thong Nhat and Hai An
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thong and Hai is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Thong Nhat Rubber and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport and Thong Nhat 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 Thong Nhat Rubber are associated (or correlated) with Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of Thong Nhat i.e., Thong Nhat and Hai An go up and down completely randomly.
Pair Corralation between Thong Nhat and Hai An
Assuming the 90 days trading horizon Thong Nhat Rubber is expected to under-perform the Hai An. In addition to that, Thong Nhat is 1.81 times more volatile than Hai An Transport. It trades about -0.11 of its total potential returns per unit of risk. Hai An Transport is currently generating about 0.19 per unit of volatility. If you would invest 4,390,000 in Hai An Transport on September 1, 2024 and sell it today you would earn a total of 415,000 from holding Hai An Transport or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Thong Nhat Rubber vs. Hai An Transport
Performance |
| Timeline |
| Thong Nhat Rubber |
| Hai An Transport |
Thong Nhat and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thong Nhat and Hai An
The main advantage of trading using opposite Thong Nhat and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thong Nhat position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| Thong Nhat vs. FIT INVEST JSC | Thong Nhat vs. Damsan JSC | Thong Nhat vs. An Phat Plastic | Thong Nhat vs. Alphanam ME |
| Hai An vs. Viet Thanh Plastic | Hai An vs. Thong Nhat Rubber | Hai An vs. Dong Nai Plastic | Hai An vs. Fecon Mining JSC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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