Correlation Between Vien Dong and Pha Le
Can any of the company-specific risk be diversified away by investing in both Vien Dong 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 Vien Dong and Pha Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vien Dong Investment and Pha Le Plastics, you can compare the effects of market volatilities on Vien Dong 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 Vien Dong with a short position of Pha Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vien Dong and Pha Le.
Diversification Opportunities for Vien Dong and Pha Le
Good diversification
The 3 months correlation between Vien and Pha is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vien Dong Investment 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 Vien Dong 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 Vien Dong Investment 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 Vien Dong i.e., Vien Dong and Pha Le go up and down completely randomly.
Pair Corralation between Vien Dong and Pha Le
Assuming the 90 days trading horizon Vien Dong Investment is expected to generate 0.97 times more return on investment than Pha Le. However, Vien Dong Investment is 1.03 times less risky than Pha Le. It trades about 0.03 of its potential returns per unit of risk. Pha Le Plastics is currently generating about 0.02 per unit of risk. If you would invest 466,487 in Vien Dong Investment on November 1, 2024 and sell it today you would earn a total of 71,513 from holding Vien Dong Investment or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
Vien Dong Investment vs. Pha Le Plastics
Performance |
| Timeline |
| Vien Dong Investment |
| Pha Le Plastics |
Vien Dong and Pha Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vien Dong and Pha Le
The main advantage of trading using opposite Vien Dong and Pha Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vien Dong 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.| Vien Dong vs. Hanoi Beer Alcohol | Vien Dong vs. Tin Nghia Industrial | Vien Dong vs. Investment And Construction | Vien Dong vs. VTC Telecommunications JSC |
| Pha Le vs. HUD1 Investment and | Pha Le vs. LDG Investment JSC | Pha Le vs. Tng Investment And | Pha Le vs. Vien Dong Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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