Correlation Between Mekong Fisheries and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Binh Duong 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 Binh Duong 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 Binh Duong Construction, you can compare the effects of market volatilities on Mekong Fisheries and Binh Duong 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 Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Binh Duong.
Diversification Opportunities for Mekong Fisheries and Binh Duong
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekong and Binh is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Binh Duong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Construction 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 Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Construction has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Binh Duong go up and down completely randomly.
Pair Corralation between Mekong Fisheries and Binh Duong
Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to under-perform the Binh Duong. In addition to that, Mekong Fisheries is 1.65 times more volatile than Binh Duong Construction. It trades about -0.01 of its total potential returns per unit of risk. Binh Duong Construction is currently generating about 0.54 per unit of volatility. If you would invest 564,000 in Binh Duong Construction on August 28, 2024 and sell it today you would earn a total of 118,000 from holding Binh Duong Construction or generate 20.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekong Fisheries JSC vs. Binh Duong Construction
Performance |
| Timeline |
| Mekong Fisheries JSC |
| Binh Duong Construction |
Mekong Fisheries and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekong Fisheries and Binh Duong
The main advantage of trading using opposite Mekong Fisheries and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| Mekong Fisheries vs. Ha Long Investment | Mekong Fisheries vs. CMC Investment JSC | Mekong Fisheries vs. Post and Telecommunications | Mekong Fisheries vs. Danang Education Investment |
| Binh Duong vs. An Phat Plastic | Binh Duong vs. Plastic Additives JSC | Binh Duong vs. Hanoi Plastics JSC | Binh Duong vs. PVI Reinsurance Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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