Correlation Between Thong Nhat and Pha Le
Can any of the company-specific risk be diversified away by investing in both Thong Nhat and Pha Le 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 Pha Le 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 Pha Le Plastics, you can compare the effects of market volatilities on Thong Nhat and Pha Le 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 Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thong Nhat and Pha Le.
Diversification Opportunities for Thong Nhat and Pha Le
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thong and Pha is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Thong Nhat Rubber and Pha Le Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Le Plastics 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 Pha Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Le Plastics has no effect on the direction of Thong Nhat i.e., Thong Nhat and Pha Le go up and down completely randomly.
Pair Corralation between Thong Nhat and Pha Le
Assuming the 90 days trading horizon Thong Nhat is expected to generate 79.37 times less return on investment than Pha Le. In addition to that, Thong Nhat is 2.37 times more volatile than Pha Le Plastics. It trades about 0.0 of its total potential returns per unit of risk. Pha Le Plastics is currently generating about 0.15 per unit of volatility. If you would invest 449,000 in Pha Le Plastics on October 25, 2024 and sell it today you would earn a total of 31,000 from holding Pha Le Plastics or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Thong Nhat Rubber vs. Pha Le Plastics
Performance |
| Timeline |
| Thong Nhat Rubber |
| Pha Le Plastics |
Thong Nhat and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thong Nhat and Pha Le
The main advantage of trading using opposite Thong Nhat and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thong Nhat position performs unexpectedly, Pha Le 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 Le will offset losses from the drop in Pha Le's long position.| Thong Nhat vs. FIT INVEST JSC | Thong Nhat vs. Damsan JSC | Thong Nhat vs. An Phat Plastic | Thong Nhat vs. APG Securities Joint |
| Pha Le vs. SCG Construction JSC | Pha Le vs. Binhthuan Agriculture Services | Pha Le vs. BIDV Insurance Corp | Pha Le vs. PVI Reinsurance Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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