Correlation Between Bentre Aquaproduct and Foreign Trade
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Foreign Trade 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 Foreign Trade 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 Foreign Trade Development, you can compare the effects of market volatilities on Bentre Aquaproduct and Foreign Trade 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 Foreign Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Foreign Trade.
Diversification Opportunities for Bentre Aquaproduct and Foreign Trade
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Foreign is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Foreign Trade Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Trade Development 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 Foreign Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Trade Development has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Foreign Trade go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Foreign Trade
Assuming the 90 days trading horizon Bentre Aquaproduct is expected to generate 17.55 times less return on investment than Foreign Trade. But when comparing it to its historical volatility, Bentre Aquaproduct Import is 3.32 times less risky than Foreign Trade. It trades about 0.06 of its potential returns per unit of risk. Foreign Trade Development is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,500,000 in Foreign Trade Development on August 28, 2024 and sell it today you would earn a total of 100,000 from holding Foreign Trade Development or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.37% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Foreign Trade Development
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Foreign Trade Development |
Bentre Aquaproduct and Foreign Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Foreign Trade
The main advantage of trading using opposite Bentre Aquaproduct and Foreign Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Foreign Trade 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 Foreign Trade will offset losses from the drop in Foreign Trade's long position.| Bentre Aquaproduct vs. FPT Digital Retail | Bentre Aquaproduct vs. Construction And Investment | Bentre Aquaproduct vs. Vina2 Investment and | Bentre Aquaproduct vs. Hai An Transport |
| Foreign Trade vs. FIT INVEST JSC | Foreign Trade vs. Damsan JSC | Foreign Trade vs. An Phat Plastic | Foreign Trade vs. APG Securities Joint |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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