Correlation Between Saigon Machinery and An Phat
Can any of the company-specific risk be diversified away by investing in both Saigon Machinery and An Phat 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 Machinery and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Machinery Spare and An Phat Plastic, you can compare the effects of market volatilities on Saigon Machinery and An Phat 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 Machinery with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Machinery and An Phat.
Diversification Opportunities for Saigon Machinery and An Phat
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saigon and AAA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Machinery Spare and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and Saigon Machinery 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 Machinery Spare are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Saigon Machinery i.e., Saigon Machinery and An Phat go up and down completely randomly.
Pair Corralation between Saigon Machinery and An Phat
Assuming the 90 days trading horizon Saigon Machinery Spare is expected to generate 1.93 times more return on investment than An Phat. However, Saigon Machinery is 1.93 times more volatile than An Phat Plastic. It trades about 0.06 of its potential returns per unit of risk. An Phat Plastic is currently generating about 0.03 per unit of risk. If you would invest 745,559 in Saigon Machinery Spare on September 24, 2024 and sell it today you would earn a total of 394,441 from holding Saigon Machinery Spare or generate 52.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 60.32% |
Values | Daily Returns |
Saigon Machinery Spare vs. An Phat Plastic
Performance |
Timeline |
Saigon Machinery Spare |
An Phat Plastic |
Saigon Machinery and An Phat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saigon Machinery and An Phat
The main advantage of trading using opposite Saigon Machinery and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Machinery position performs unexpectedly, An Phat 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 Phat will offset losses from the drop in An Phat's long position.Saigon Machinery vs. FIT INVEST JSC | Saigon Machinery vs. Damsan JSC | Saigon Machinery vs. An Phat Plastic | Saigon Machinery vs. Alphanam ME |
An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. Alphanam ME | An Phat 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |