Correlation Between HNX 30 and THE PHILIPPINE
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By analyzing existing cross correlation between HNX 30 and THE PHILIPPINE STOCK, you can compare the effects of market volatilities on HNX 30 and THE PHILIPPINE 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 HNX 30 with a short position of THE PHILIPPINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and THE PHILIPPINE.
Diversification Opportunities for HNX 30 and THE PHILIPPINE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HNX and THE is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and THE PHILIPPINE STOCK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THE PHILIPPINE STOCK and HNX 30 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 HNX 30 are associated (or correlated) with THE PHILIPPINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THE PHILIPPINE STOCK has no effect on the direction of HNX 30 i.e., HNX 30 and THE PHILIPPINE go up and down completely randomly.
Pair Corralation between HNX 30 and THE PHILIPPINE
Assuming the 90 days trading horizon HNX 30 is expected to under-perform the THE PHILIPPINE. In addition to that, HNX 30 is 2.33 times more volatile than THE PHILIPPINE STOCK. It trades about -0.18 of its total potential returns per unit of risk. THE PHILIPPINE STOCK is currently generating about -0.18 per unit of volatility. If you would invest 697,981 in THE PHILIPPINE STOCK on February 1, 2024 and sell it today you would lose (27,932) from holding THE PHILIPPINE STOCK or give up 4.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HNX 30 vs. THE PHILIPPINE STOCK
Performance |
Timeline |
HNX 30 and THE PHILIPPINE Volatility Contrast
Predicted Return Density |
Returns |
HNX 30
Pair trading matchups for HNX 30
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
Pair Trading with HNX 30 and THE PHILIPPINE
The main advantage of trading using opposite HNX 30 and THE PHILIPPINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, THE PHILIPPINE 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 THE PHILIPPINE will offset losses from the drop in THE PHILIPPINE's long position.HNX 30 vs. 577 Investment Corp | HNX 30 vs. Din Capital Investment | HNX 30 vs. FPT Digital Retail | HNX 30 vs. Dong A Plastic |
THE PHILIPPINE vs. Rizal Commercial Banking | THE PHILIPPINE vs. Security Bank Corp | THE PHILIPPINE vs. Metro Retail Stores | THE PHILIPPINE vs. BDO Unibank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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