Correlation Between Vnsteel Vicasa and An Phat
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa and An Phat 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 Vnsteel Vicasa and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vnsteel Vicasa JSC and An Phat Holdings, you can compare the effects of market volatilities on Vnsteel Vicasa and An Phat 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 Vnsteel Vicasa with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and An Phat.
Diversification Opportunities for Vnsteel Vicasa and An Phat
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vnsteel and APH is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC and An Phat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Holdings and Vnsteel Vicasa 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 Vnsteel Vicasa JSC are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Holdings has no effect on the direction of Vnsteel Vicasa i.e., Vnsteel Vicasa and An Phat go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and An Phat
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the An Phat. In addition to that, Vnsteel Vicasa is 1.79 times more volatile than An Phat Holdings. It trades about -0.27 of its total potential returns per unit of risk. An Phat Holdings is currently generating about 0.15 per unit of volatility. If you would invest 685,000 in An Phat Holdings on October 20, 2024 and sell it today you would earn a total of 39,000 from holding An Phat Holdings or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. An Phat Holdings
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| An Phat Holdings |
Vnsteel Vicasa and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and An Phat
The main advantage of trading using opposite Vnsteel Vicasa and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Vnsteel Vicasa vs. Danang Rubber JSC | Vnsteel Vicasa vs. Vincom Retail JSC | Vnsteel Vicasa vs. Techcom Vietnam REIT | Vnsteel Vicasa vs. FPT Digital Retail |
| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. An Phat Plastic | An Phat vs. APG Securities Joint |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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