Correlation Between Hanoi Plastics and Kien Giang

Can any of the company-specific risk be diversified away by investing in both Hanoi Plastics and Kien Giang 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 Hanoi Plastics and Kien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hanoi Plastics JSC and Kien Giang Construction, you can compare the effects of market volatilities on Hanoi Plastics and Kien Giang 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 Hanoi Plastics with a short position of Kien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Plastics and Kien Giang.

Diversification Opportunities for Hanoi Plastics and Kien Giang

0.6

Correlation Coefficient

Hanoi Plastics  Kien Giang

Poor diversification

The 3 months correlation between Hanoi and Kien is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Plastics JSC and Kien Giang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kien Giang Construction and Hanoi Plastics 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 Hanoi Plastics JSC are associated (or correlated) with Kien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kien Giang Construction has no effect on the direction of Hanoi Plastics i.e., Hanoi Plastics and Kien Giang go up and down completely randomly.

Pair Corralation between Hanoi Plastics and Kien Giang

Assuming the 90 days trading horizon Hanoi Plastics JSC is expected to generate 0.84 times more return on investment than Kien Giang. However, Hanoi Plastics JSC is 1.19 times less risky than Kien Giang. It trades about 0.14 of its potential returns per unit of risk. Kien Giang Construction is currently generating about 0.07 per unit of risk. If you would invest  1,125,000  in Hanoi Plastics JSC on May 7, 2025 and sell it today you would earn a total of  195,000  from holding Hanoi Plastics JSC or generate 17.33% return on investment over 90 days.

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

Hanoi Plastics JSC  vs.  Kien Giang Construction

Hanoi Plastics JSC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hanoi Plastics JSC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical indicators, Hanoi Plastics displayed solid returns over the last few months and may actually be approaching a breakup point.

Kien Giang Construction

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Kien Giang Construction are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Kien Giang may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Hanoi Plastics and Kien Giang

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

The idea behind Hanoi Plastics JSC and Kien Giang Construction 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.