Correlation Between Bentre Aquaproduct and FPT Corp
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and FPT Corp 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 FPT Corp 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 FPT Corp, you can compare the effects of market volatilities on Bentre Aquaproduct and FPT Corp 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 FPT Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and FPT Corp.
Diversification Opportunities for Bentre Aquaproduct and FPT Corp
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bentre and FPT is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and FPT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Corp 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 FPT Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Corp has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and FPT Corp go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and FPT Corp
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.67 times more return on investment than FPT Corp. However, Bentre Aquaproduct Import is 1.5 times less risky than FPT Corp. It trades about 0.1 of its potential returns per unit of risk. FPT Corp is currently generating about -0.09 per unit of risk. If you would invest 3,910,000 in Bentre Aquaproduct Import on October 18, 2024 and sell it today you would earn a total of 40,000 from holding Bentre Aquaproduct Import or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. FPT Corp
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| FPT Corp |
Bentre Aquaproduct and FPT Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and FPT Corp
The main advantage of trading using opposite Bentre Aquaproduct and FPT Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, FPT Corp 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 FPT Corp will offset losses from the drop in FPT Corp's long position.| Bentre Aquaproduct vs. Transport and Industry | Bentre Aquaproduct vs. Ducgiang Chemicals Detergent | Bentre Aquaproduct vs. HUD1 Investment and | Bentre Aquaproduct vs. Vina2 Investment and |
| FPT Corp vs. FIT INVEST JSC | FPT Corp vs. Damsan JSC | FPT Corp vs. An Phat Plastic | FPT Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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