Correlation Between Binhthuan Agriculture and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both Binhthuan Agriculture and 1369 Construction 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 1369 Construction 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 1369 Construction JSC, you can compare the effects of market volatilities on Binhthuan Agriculture and 1369 Construction 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 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binhthuan Agriculture and 1369 Construction.
Diversification Opportunities for Binhthuan Agriculture and 1369 Construction
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binhthuan and 1369 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Binhthuan Agriculture Services and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC 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 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Binhthuan Agriculture i.e., Binhthuan Agriculture and 1369 Construction go up and down completely randomly.
Pair Corralation between Binhthuan Agriculture and 1369 Construction
Assuming the 90 days trading horizon Binhthuan Agriculture Services is expected to under-perform the 1369 Construction. But the stock apears to be less risky and, when comparing its historical volatility, Binhthuan Agriculture Services is 1.26 times less risky than 1369 Construction. The stock trades about -0.06 of its potential returns per unit of risk. The 1369 Construction JSC is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 690,000 in 1369 Construction JSC on November 5, 2024 and sell it today you would lose (80,000) from holding 1369 Construction JSC or give up 11.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binhthuan Agriculture Services vs. 1369 Construction JSC
Performance |
| Timeline |
| Binhthuan Agriculture |
| 1369 Construction JSC |
Binhthuan Agriculture and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binhthuan Agriculture and 1369 Construction
The main advantage of trading using opposite Binhthuan Agriculture and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binhthuan Agriculture position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| Binhthuan Agriculture vs. Vu Dang Investment | Binhthuan Agriculture vs. Tien Giang Investment | Binhthuan Agriculture vs. Thanh Dat Investment | Binhthuan Agriculture vs. Vina2 Investment and |
| 1369 Construction vs. Post and Telecommunications | 1369 Construction vs. Bao Ngoc Investment | 1369 Construction vs. Thanh Dat Investment | 1369 Construction vs. Construction And Investment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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