Correlation Between Bentre Aquaproduct and Damsan JSC
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Damsan JSC 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 Damsan JSC 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 Damsan JSC, you can compare the effects of market volatilities on Bentre Aquaproduct and Damsan JSC 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 Damsan JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Damsan JSC.
Diversification Opportunities for Bentre Aquaproduct and Damsan JSC
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bentre and Damsan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Damsan JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damsan JSC 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 Damsan JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damsan JSC has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Damsan JSC go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Damsan JSC
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.43 times more return on investment than Damsan JSC. However, Bentre Aquaproduct Import is 2.34 times less risky than Damsan JSC. It trades about -0.03 of its potential returns per unit of risk. Damsan JSC is currently generating about -0.2 per unit of risk. If you would invest 3,975,000 in Bentre Aquaproduct Import on August 24, 2024 and sell it today you would lose (20,000) from holding Bentre Aquaproduct Import or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Damsan JSC
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Damsan JSC |
Bentre Aquaproduct and Damsan JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Damsan JSC
The main advantage of trading using opposite Bentre Aquaproduct and Damsan JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Damsan JSC 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 Damsan JSC will offset losses from the drop in Damsan JSC'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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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