Correlation Between Bentre Aquaproduct and Hoa Phat
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Hoa Phat 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 Hoa Phat 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 Hoa Phat Group, you can compare the effects of market volatilities on Bentre Aquaproduct and Hoa Phat 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 Hoa Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Hoa Phat.
Diversification Opportunities for Bentre Aquaproduct and Hoa Phat
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bentre and Hoa is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Hoa Phat Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoa Phat Group 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 Hoa Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoa Phat Group has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Hoa Phat go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Hoa Phat
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.89 times more return on investment than Hoa Phat. However, Bentre Aquaproduct Import is 1.12 times less risky than Hoa Phat. It trades about -0.05 of its potential returns per unit of risk. Hoa Phat Group is currently generating about -0.22 per unit of risk. If you would invest 4,519,998 in Bentre Aquaproduct Import on January 13, 2025 and sell it today you would lose (199,998) from holding Bentre Aquaproduct Import or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Hoa Phat Group
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Hoa Phat Group |
Bentre Aquaproduct and Hoa Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Hoa Phat
The main advantage of trading using opposite Bentre Aquaproduct and Hoa Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Hoa Phat 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 Hoa Phat will offset losses from the drop in Hoa Phat's long position.| Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct vs. Alphanam ME |
| Hoa Phat vs. FIT INVEST JSC | Hoa Phat vs. Damsan JSC | Hoa Phat vs. An Phat Plastic | Hoa Phat vs. Alphanam ME |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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