Correlation Between An Phat and Hcd Investment

Can any of the company-specific risk be diversified away by investing in both An Phat and Hcd Investment 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 Hcd Investment 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 Hcd Investment Producing, you can compare the effects of market volatilities on An Phat and Hcd Investment 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 Hcd Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Hcd Investment.

Diversification Opportunities for An Phat and Hcd Investment

0.67

Correlation Coefficient

An Phat  Hcd Investment

Poor diversification

The 3 months correlation between AAA and Hcd is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Hcd Investment Producing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hcd Investment Producing 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 Hcd Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hcd Investment Producing has no effect on the direction of An Phat i.e., An Phat and Hcd Investment go up and down completely randomly.

Pair Corralation between An Phat and Hcd Investment

Assuming the 90 days trading horizon An Phat Plastic is expected to generate 1.41 times more return on investment than Hcd Investment. However, An Phat is 1.41 times more volatile than Hcd Investment Producing. It trades about 0.2 of its potential returns per unit of risk. Hcd Investment Producing is currently generating about 0.11 per unit of risk. If you would invest  669,117  in An Phat Plastic on May 4, 2025 and sell it today you would earn a total of  181,883  from holding An Phat Plastic or generate 27.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

An Phat Plastic  vs.  Hcd Investment Producing

An Phat Plastic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in An Phat Plastic are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, An Phat displayed solid returns over the last few months and may actually be approaching a breakup point.

Hcd Investment Producing

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hcd Investment Producing are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Hcd Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with An Phat and Hcd Investment

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

The idea behind An Phat Plastic and Hcd Investment Producing 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.