Correlation Between Alphanam and Ha Noi

Can any of the company-specific risk be diversified away by investing in both Alphanam and Ha Noi 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 Alphanam and Ha Noi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alphanam ME and Ha Noi Education, you can compare the effects of market volatilities on Alphanam and Ha Noi 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 Alphanam with a short position of Ha Noi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Ha Noi.

Diversification Opportunities for Alphanam and Ha Noi

-0.4

Correlation Coefficient

Alphanam  Ha Noi

Very good diversification

The 3 months correlation between Alphanam and EID is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Ha Noi Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Noi Education and Alphanam 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 Alphanam ME are associated (or correlated) with Ha Noi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Noi Education has no effect on the direction of Alphanam i.e., Alphanam and Ha Noi go up and down completely randomly.

Pair Corralation between Alphanam and Ha Noi

Assuming the 90 days trading horizon Alphanam is expected to generate 19.96 times less return on investment than Ha Noi. In addition to that, Alphanam is 1.38 times more volatile than Ha Noi Education. It trades about 0.01 of its total potential returns per unit of risk. Ha Noi Education is currently generating about 0.19 per unit of volatility. If you would invest  2,750,000  in Ha Noi Education on December 5, 2024 and sell it today you would earn a total of  120,000  from holding Ha Noi Education or generate 4.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	59.09%
Values	Daily Returns

Alphanam ME  vs.  Ha Noi Education

Alphanam ME

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alphanam ME has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Alphanam is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Ha Noi Education

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ha Noi Education are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Ha Noi may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alphanam and Ha Noi

The main advantage of trading using opposite Alphanam and Ha Noi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Ha Noi 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 Ha Noi will offset losses from the drop in Ha Noi's long position.

The idea behind Alphanam ME and Ha Noi Education pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.