Correlation Between Binhthuan Agriculture and Ba Ria
Can any of the company-specific risk be diversified away by investing in both Binhthuan Agriculture and Ba Ria 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 Ba Ria 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 Ba Ria Thermal, you can compare the effects of market volatilities on Binhthuan Agriculture and Ba Ria 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 Ba Ria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binhthuan Agriculture and Ba Ria.
Diversification Opportunities for Binhthuan Agriculture and Ba Ria
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Binhthuan and BTP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Binhthuan Agriculture Services and Ba Ria Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ba Ria Thermal 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 Ba Ria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ba Ria Thermal has no effect on the direction of Binhthuan Agriculture i.e., Binhthuan Agriculture and Ba Ria go up and down completely randomly.
Pair Corralation between Binhthuan Agriculture and Ba Ria
Assuming the 90 days trading horizon Binhthuan Agriculture Services is expected to generate 1.2 times more return on investment than Ba Ria. However, Binhthuan Agriculture is 1.2 times more volatile than Ba Ria Thermal. It trades about 0.2 of its potential returns per unit of risk. Ba Ria Thermal is currently generating about -0.54 per unit of risk. If you would invest 379,000 in Binhthuan Agriculture Services on August 31, 2024 and sell it today you would earn a total of 16,000 from holding Binhthuan Agriculture Services or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binhthuan Agriculture Services vs. Ba Ria Thermal
Performance |
| Timeline |
| Binhthuan Agriculture |
| Ba Ria Thermal |
Binhthuan Agriculture and Ba Ria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binhthuan Agriculture and Ba Ria
The main advantage of trading using opposite Binhthuan Agriculture and Ba Ria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binhthuan Agriculture position performs unexpectedly, Ba Ria 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 Ba Ria will offset losses from the drop in Ba Ria's long position.| Binhthuan Agriculture vs. FIT INVEST JSC | Binhthuan Agriculture vs. Damsan JSC | Binhthuan Agriculture vs. An Phat Plastic | Binhthuan Agriculture vs. Alphanam ME |
| Ba Ria vs. SCG Construction JSC | Ba Ria vs. Song Hong Aluminum | Ba Ria vs. Agriculture Printing and | Ba Ria vs. Nafoods Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |