Correlation Between Vina2 Investment and Pha Lai
Can any of the company-specific risk be diversified away by investing in both Vina2 Investment and Pha Lai 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 Lai 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 Lai Thermal, you can compare the effects of market volatilities on Vina2 Investment and Pha Lai 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 Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina2 Investment and Pha Lai.
Diversification Opportunities for Vina2 Investment and Pha Lai
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vina2 and Pha is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Vina2 Investment and and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of Vina2 Investment i.e., Vina2 Investment and Pha Lai go up and down completely randomly.
Pair Corralation between Vina2 Investment and Pha Lai
Assuming the 90 days trading horizon Vina2 Investment and is expected to generate 1.45 times more return on investment than Pha Lai. However, Vina2 Investment is 1.45 times more volatile than Pha Lai Thermal. It trades about 0.0 of its potential returns per unit of risk. Pha Lai Thermal is currently generating about -0.12 per unit of risk. If you would invest 950,000 in Vina2 Investment and on September 5, 2024 and sell it today you would lose (50,000) from holding Vina2 Investment and or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Vina2 Investment and vs. Pha Lai Thermal
Performance |
| Timeline |
| Vina2 Investment |
| Pha Lai Thermal |
Vina2 Investment and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina2 Investment and Pha Lai
The main advantage of trading using opposite Vina2 Investment and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina2 Investment position performs unexpectedly, Pha Lai 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 Lai will offset losses from the drop in Pha Lai's long position.| Vina2 Investment vs. LDG Investment JSC | Vina2 Investment vs. Development Investment Construction | Vina2 Investment vs. MST Investment JSC | Vina2 Investment vs. Telecoms Informatics JSC |
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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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