Correlation Between Mekong Fisheries and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Bentre Aquaproduct 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 Mekong Fisheries and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekong Fisheries JSC and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Mekong Fisheries and Bentre Aquaproduct 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 Mekong Fisheries with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Bentre Aquaproduct.
Diversification Opportunities for Mekong Fisheries and Bentre Aquaproduct
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mekong and Bentre is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and Mekong Fisheries 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 Mekong Fisheries JSC are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Bentre Aquaproduct
Assuming the 90 days trading horizon Mekong Fisheries is expected to generate 1.44 times less return on investment than Bentre Aquaproduct. In addition to that, Mekong Fisheries is 4.1 times more volatile than Bentre Aquaproduct Import. It trades about 0.01 of its total potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.06 per unit of volatility. If you would invest 3,925,000 in Bentre Aquaproduct Import on August 27, 2024 and sell it today you would earn a total of 30,000 from holding Bentre Aquaproduct Import or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Bentre Aquaproduct Import |
Mekong Fisheries and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Bentre Aquaproduct
The main advantage of trading using opposite Mekong Fisheries and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. APG Securities Joint |
| Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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