Correlation Between BH Global and Vietnam Manufacturing
Can any of the company-specific risk be diversified away by investing in both BH Global and Vietnam Manufacturing 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 BH Global and Vietnam Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BH Global and Vietnam Manufacturing and, you can compare the effects of market volatilities on BH Global and Vietnam Manufacturing 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 BH Global with a short position of Vietnam Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BH Global and Vietnam Manufacturing.
Diversification Opportunities for BH Global and Vietnam Manufacturing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 911608 and Vietnam is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding BH Global and Vietnam Manufacturing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Manufacturing and and BH Global 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 BH Global are associated (or correlated) with Vietnam Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Manufacturing and has no effect on the direction of BH Global i.e., BH Global and Vietnam Manufacturing go up and down completely randomly.
Pair Corralation between BH Global and Vietnam Manufacturing
Assuming the 90 days trading horizon BH Global is expected to under-perform the Vietnam Manufacturing. In addition to that, BH Global is 3.08 times more volatile than Vietnam Manufacturing and. It trades about -0.01 of its total potential returns per unit of risk. Vietnam Manufacturing and is currently generating about 0.08 per unit of volatility. If you would invest 634.00 in Vietnam Manufacturing and on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Vietnam Manufacturing and or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BH Global vs. Vietnam Manufacturing and
Performance |
| Timeline |
| BH Global |
| Vietnam Manufacturing and |
BH Global and Vietnam Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BH Global and Vietnam Manufacturing
The main advantage of trading using opposite BH Global and Vietnam Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BH Global position performs unexpectedly, Vietnam Manufacturing 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 Vietnam Manufacturing will offset losses from the drop in Vietnam Manufacturing's long position.| BH Global vs. Neo Neon Holdings Limited | BH Global vs. Vietnam Manufacturing and | BH Global vs. Medtecs International | BH Global vs. Digital China Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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