Correlation Between Bentre Aquaproduct and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and FIT INVEST 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 FIT INVEST 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 FIT INVEST JSC, you can compare the effects of market volatilities on Bentre Aquaproduct and FIT INVEST 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 FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and FIT INVEST.
Diversification Opportunities for Bentre Aquaproduct and FIT INVEST
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bentre and FIT is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and FIT INVEST JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT INVEST 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 FIT INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT INVEST JSC has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and FIT INVEST go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and FIT INVEST
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.61 times more return on investment than FIT INVEST. However, Bentre Aquaproduct Import is 1.64 times less risky than FIT INVEST. It trades about -0.03 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.13 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 | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. FIT INVEST JSC
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| FIT INVEST JSC |
Bentre Aquaproduct and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and FIT INVEST
The main advantage of trading using opposite Bentre Aquaproduct and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, FIT INVEST 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 FIT INVEST will offset losses from the drop in FIT INVEST'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 |
| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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