Correlation Between Saigon Beer and An Gia

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

By analyzing existing cross correlation between Saigon Beer Alcohol and An Gia Real, you can compare the effects of market volatilities on Saigon Beer and An Gia 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 Saigon Beer with a short position of An Gia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and An Gia.

Diversification Opportunities for Saigon Beer and An Gia

0.0

Correlation Coefficient

Saigon Beer  An Gia

Pay attention - limited upside

The 3 months correlation between Saigon and AGG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol and An Gia Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Gia Real and Saigon Beer 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 Saigon Beer Alcohol are associated (or correlated) with An Gia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Gia Real has no effect on the direction of Saigon Beer i.e., Saigon Beer and An Gia go up and down completely randomly.

Pair Corralation between Saigon Beer and An Gia

If you would invest  0.00  in An Gia Real on December 21, 2024 and sell it today you would earn a total of  0.00  from holding An Gia Real or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Saigon Beer Alcohol  vs.  An Gia Real

Saigon Beer Alcohol

Risk-Adjusted Performance

Very Weak

Over the last 90 days Saigon Beer Alcohol has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

An Gia Real

Risk-Adjusted Performance

Good

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

Pair Trading with Saigon Beer and An Gia

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

The idea behind Saigon Beer Alcohol and An Gia Real 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.