Correlation Between An Phat and Sea Air
Can any of the company-specific risk be diversified away by investing in both An Phat and Sea Air 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 An Phat and Sea Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and Sea Air Freight, you can compare the effects of market volatilities on An Phat and Sea Air 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 An Phat with a short position of Sea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Sea Air.
Diversification Opportunities for An Phat and Sea Air
Poor diversification
The 3 months correlation between AAA and Sea is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Sea Air Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Air Freight and An Phat 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 An Phat Plastic are associated (or correlated) with Sea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Air Freight has no effect on the direction of An Phat i.e., An Phat and Sea Air go up and down completely randomly.
Pair Corralation between An Phat and Sea Air
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Sea Air. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 1.02 times less risky than Sea Air. The stock trades about -0.1 of its potential returns per unit of risk. The Sea Air Freight is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,390,000 in Sea Air Freight on September 15, 2024 and sell it today you would lose (240,000) from holding Sea Air Freight or give up 7.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 89.06% |
Values | Daily Returns |
An Phat Plastic vs. Sea Air Freight
Performance |
Timeline |
An Phat Plastic |
Sea Air Freight |
An Phat and Sea Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with An Phat and Sea Air
The main advantage of trading using opposite An Phat and Sea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Sea Air 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 Sea Air will offset losses from the drop in Sea Air's long position.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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