Correlation Between Bentre Aquaproduct and Danang Rubber
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Danang Rubber 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 Danang Rubber 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 Danang Rubber JSC, you can compare the effects of market volatilities on Bentre Aquaproduct and Danang Rubber 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 Danang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Danang Rubber.
Diversification Opportunities for Bentre Aquaproduct and Danang Rubber
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bentre and Danang is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Danang Rubber JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danang Rubber 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 Danang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danang Rubber JSC has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Danang Rubber go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Danang Rubber
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 1.84 times more return on investment than Danang Rubber. However, Bentre Aquaproduct is 1.84 times more volatile than Danang Rubber JSC. It trades about 0.42 of its potential returns per unit of risk. Danang Rubber JSC is currently generating about 0.09 per unit of risk. If you would invest 4,025,000 in Bentre Aquaproduct Import on December 1, 2024 and sell it today you would earn a total of 715,000 from holding Bentre Aquaproduct Import or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Danang Rubber JSC
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Danang Rubber JSC |
Bentre Aquaproduct and Danang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Danang Rubber
The main advantage of trading using opposite Bentre Aquaproduct and Danang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Danang Rubber 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 Danang Rubber will offset losses from the drop in Danang Rubber's long position.| Bentre Aquaproduct vs. Vietnam Construction JSC | Bentre Aquaproduct vs. Da Nang Construction | Bentre Aquaproduct vs. Vietnam JSCmmercial Bank | Bentre Aquaproduct vs. Cotec Construction JSC |
| Danang Rubber vs. VTC Telecommunications JSC | Danang Rubber vs. Hanoi Plastics JSC | Danang Rubber vs. Ben Thanh Rubber | Danang Rubber vs. Saigon Telecommunication Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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