Correlation Between Bentre Aquaproduct and Binhthuan Agriculture
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Binhthuan Agriculture 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 Bentre Aquaproduct and Binhthuan Agriculture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentre Aquaproduct Import and Binhthuan Agriculture Services, you can compare the effects of market volatilities on Bentre Aquaproduct and Binhthuan Agriculture 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 Bentre Aquaproduct with a short position of Binhthuan Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Binhthuan Agriculture.
Diversification Opportunities for Bentre Aquaproduct and Binhthuan Agriculture
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bentre and Binhthuan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Binhthuan Agriculture Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binhthuan Agriculture and Bentre Aquaproduct 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 Bentre Aquaproduct Import are associated (or correlated) with Binhthuan Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binhthuan Agriculture has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Binhthuan Agriculture go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Binhthuan Agriculture
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to under-perform the Binhthuan Agriculture. But the stock apears to be less risky and, when comparing its historical volatility, Bentre Aquaproduct Import is 2.06 times less risky than Binhthuan Agriculture. The stock trades about -0.03 of its potential returns per unit of risk. The Binhthuan Agriculture Services is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 376,000 in Binhthuan Agriculture Services on August 24, 2024 and sell it today you would earn a total of 10,000 from holding Binhthuan Agriculture Services or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Binhthuan Agriculture Services
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Binhthuan Agriculture |
Bentre Aquaproduct and Binhthuan Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Binhthuan Agriculture
The main advantage of trading using opposite Bentre Aquaproduct and Binhthuan Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Binhthuan Agriculture 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 Binhthuan Agriculture will offset losses from the drop in Binhthuan Agriculture's long position.| Bentre Aquaproduct vs. Foreign Trade Development | Bentre Aquaproduct vs. Taseco Air Services | Bentre Aquaproduct vs. Sao Ta Foods | Bentre Aquaproduct vs. FPT Digital Retail |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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