Correlation Between Foreign Trade and Ha Noi
Can any of the company-specific risk be diversified away by investing in both Foreign Trade 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 Foreign Trade and Ha Noi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foreign Trade Development and Ha Noi Education, you can compare the effects of market volatilities on Foreign Trade 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 Foreign Trade with a short position of Ha Noi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Ha Noi.
Diversification Opportunities for Foreign Trade and Ha Noi
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foreign and EID is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Development 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 Foreign Trade 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 Foreign Trade Development 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 Foreign Trade i.e., Foreign Trade and Ha Noi go up and down completely randomly.
Pair Corralation between Foreign Trade and Ha Noi
Assuming the 90 days trading horizon Foreign Trade is expected to generate 2.72 times less return on investment than Ha Noi. In addition to that, Foreign Trade is 2.71 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 0.07 per unit of volatility. If you would invest 1,669,745 in Ha Noi Education on October 4, 2024 and sell it today you would earn a total of 1,010,255 from holding Ha Noi Education or generate 60.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 64.26% |
Values | Daily Returns |
Foreign Trade Development vs. Ha Noi Education
Performance |
Timeline |
Foreign Trade Development |
Ha Noi Education |
Foreign Trade and Ha Noi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Foreign Trade and Ha Noi
The main advantage of trading using opposite Foreign Trade and Ha Noi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade 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.Foreign Trade vs. FIT INVEST JSC | Foreign Trade vs. Damsan JSC | Foreign Trade vs. An Phat Plastic | Foreign Trade vs. APG Securities Joint |
Ha Noi vs. FIT INVEST JSC | Ha Noi vs. Damsan JSC | Ha Noi vs. An Phat Plastic | Ha Noi 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |