Correlation Between Vina2 Investment and Pha Le
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment 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 Vina2 Investment and Pha Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vina2 Investment and and Pha Le Plastics, you can compare the effects of market volatilities on Vina2 Investment 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 Vina2 Investment with a short position of Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Pha Le.
Diversification Opportunities for Vina2 Investment and Pha Le
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vina2 and Pha is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and 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 Vina2 Investment 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 Vina2 Investment and 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 Vina2 Investment i.e., Vina2 Investment and Pha Le go up and down completely randomly.
Pair Corralation between Vina2 Investment and Pha Le
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 1.46 times more return on investment than Pha Le. However, Vina2 Investment is 1.46 times more volatile than Pha Le Plastics. It trades about 0.1 of its potential returns per unit of risk. Pha Le Plastics is currently generating about 0.04 per unit of risk. If you would invest 670,000 in Vina2 Investment and on November 3, 2024 and sell it today you would earn a total of 210,000 from holding Vina2 Investment and or generate 31.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Vina2 Investment and vs. Pha Le Plastics
Performance |
| Timeline |
| Vina2 Investment |
| Pha Le Plastics |
Vina2 Investment and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Pha Le
The main advantage of trading using opposite Vina2 Investment and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment 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.| Vina2 Investment vs. Vnsteel Vicasa JSC | Vina2 Investment vs. Saigon Telecommunication Technologies | Vina2 Investment vs. Danang Education Investment | Vina2 Investment vs. Tien Phong Plastic |
| Pha Le vs. Investment and Industrial | Pha Le vs. Transport and Industry | Pha Le vs. Petrovietnam Technical Services | Pha Le vs. Song Hong Aluminum |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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