Correlation Between Hai An and Alphanam
Can any of the company-specific risk be diversified away by investing in both Hai An and Alphanam 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 Hai An and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and Alphanam ME, you can compare the effects of market volatilities on Hai An and Alphanam 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 Hai An with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and Alphanam.
Diversification Opportunities for Hai An and Alphanam
Pay attention - limited upside
The 3 months correlation between Hai and Alphanam is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Hai An 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 Hai An Transport are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Hai An i.e., Hai An and Alphanam go up and down completely randomly.
Pair Corralation between Hai An and Alphanam
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.85 times more return on investment than Alphanam. However, Hai An Transport is 1.17 times less risky than Alphanam. It trades about 0.09 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.07 per unit of risk. If you would invest 2,000,000 in Hai An Transport on September 23, 2024 and sell it today you would earn a total of 2,930,000 from holding Hai An Transport or generate 146.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 67.95% |
Values | Daily Returns |
Hai An Transport vs. Alphanam ME
Performance |
Timeline |
Hai An Transport |
Alphanam ME |
Hai An and Alphanam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hai An and Alphanam
The main advantage of trading using opposite Hai An and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.Hai An vs. Tay Ninh Rubber | Hai An vs. Nafoods Group JSC | Hai An vs. Phuoc Hoa Rubber | Hai An vs. Petrolimex Information Technology |
Alphanam vs. VTC Telecommunications JSC | Alphanam vs. Hai An Transport | Alphanam vs. Saigon Telecommunication Technologies | Alphanam vs. Post and Telecommunications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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