Correlation Between Tri Viet and Hai An
Can any of the company-specific risk be diversified away by investing in both Tri Viet 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 Tri Viet and Hai An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and Hai An Transport, you can compare the effects of market volatilities on Tri Viet 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 Tri Viet with a short position of Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and Hai An.
Diversification Opportunities for Tri Viet and Hai An
Modest diversification
The 3 months correlation between Tri and Hai is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management 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 Tri Viet 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 Tri Viet Management 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 Tri Viet i.e., Tri Viet and Hai An go up and down completely randomly.
Pair Corralation between Tri Viet and Hai An
Assuming the 90 days trading horizon Tri Viet Management is expected to under-perform the Hai An. In addition to that, Tri Viet is 1.42 times more volatile than Hai An Transport. It trades about -0.05 of its total potential returns per unit of risk. Hai An Transport is currently generating about 0.16 per unit of volatility. If you would invest 4,685,000 in Hai An Transport on September 12, 2024 and sell it today you would earn a total of 385,000 from holding Hai An Transport or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tri Viet Management vs. Hai An Transport
Performance |
| Timeline |
| Tri Viet Management |
| Hai An Transport |
Tri Viet and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Viet and Hai An
The main advantage of trading using opposite Tri Viet and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet 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.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |