Correlation Between Binhthuan Agriculture and Alphanam
Can any of the company-specific risk be diversified away by investing in both Binhthuan Agriculture and Alphanam 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 Binhthuan Agriculture and Alphanam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binhthuan Agriculture Services and Alphanam ME, you can compare the effects of market volatilities on Binhthuan Agriculture and Alphanam 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 Binhthuan Agriculture with a short position of Alphanam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binhthuan Agriculture and Alphanam.
Diversification Opportunities for Binhthuan Agriculture and Alphanam
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binhthuan and Alphanam is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Binhthuan Agriculture Services and Alphanam ME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphanam ME and Binhthuan Agriculture 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 Binhthuan Agriculture Services are associated (or correlated) with Alphanam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphanam ME has no effect on the direction of Binhthuan Agriculture i.e., Binhthuan Agriculture and Alphanam go up and down completely randomly.
Pair Corralation between Binhthuan Agriculture and Alphanam
Assuming the 90 days trading horizon Binhthuan Agriculture Services is expected to generate 0.76 times more return on investment than Alphanam. However, Binhthuan Agriculture Services is 1.31 times less risky than Alphanam. It trades about -0.02 of its potential returns per unit of risk. Alphanam ME is currently generating about -0.07 per unit of risk. If you would invest 630,000 in Binhthuan Agriculture Services on October 31, 2024 and sell it today you would lose (196,000) from holding Binhthuan Agriculture Services or give up 31.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 64.85% |
| Values | Daily Returns |
Binhthuan Agriculture Services vs. Alphanam ME
Performance |
| Timeline |
| Binhthuan Agriculture |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binhthuan Agriculture and Alphanam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binhthuan Agriculture and Alphanam
The main advantage of trading using opposite Binhthuan Agriculture and Alphanam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binhthuan Agriculture position performs unexpectedly, Alphanam 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 Alphanam will offset losses from the drop in Alphanam's long position.| Binhthuan Agriculture vs. PetroVietnam Transportation Corp | Binhthuan Agriculture vs. Tng Investment And | Binhthuan Agriculture vs. HVC Investment and | Binhthuan Agriculture vs. Duong Hieu Trading |
| Alphanam vs. Vietnam National Reinsurance | Alphanam vs. Vietnam Dairy Products | Alphanam vs. Vietnam Construction JSC | Alphanam vs. Vietnam Airlines JSC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |