Correlation Between Bentre Aquaproduct and Bao Ngoc
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Bao Ngoc 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 Bao Ngoc 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 Bao Ngoc Investment, you can compare the effects of market volatilities on Bentre Aquaproduct and Bao Ngoc 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 Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Bao Ngoc.
Diversification Opportunities for Bentre Aquaproduct and Bao Ngoc
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Bao is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment 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 Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Bao Ngoc go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Bao Ngoc
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.33 times more return on investment than Bao Ngoc. However, Bentre Aquaproduct Import is 3.04 times less risky than Bao Ngoc. It trades about 0.17 of its potential returns per unit of risk. Bao Ngoc Investment is currently generating about -0.1 per unit of risk. If you would invest 3,930,000 in Bentre Aquaproduct Import on October 25, 2024 and sell it today you would earn a total of 145,000 from holding Bentre Aquaproduct Import or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Bao Ngoc Investment
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Bao Ngoc Investment |
Bentre Aquaproduct and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Bao Ngoc
The main advantage of trading using opposite Bentre Aquaproduct and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.| Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct vs. APG Securities Joint |
| Bao Ngoc vs. Saigon Beer Alcohol | Bao Ngoc vs. Hai An Transport | Bao Ngoc vs. Southern Rubber Industry | Bao Ngoc vs. Hanoi Plastics 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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