Correlation Between Bentre Aquaproduct and Japan Vietnam
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Japan Vietnam 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 Japan Vietnam 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 Japan Vietnam Medical, you can compare the effects of market volatilities on Bentre Aquaproduct and Japan Vietnam 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 Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Japan Vietnam.
Diversification Opportunities for Bentre Aquaproduct and Japan Vietnam
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Japan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical 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 Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Japan Vietnam go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Japan Vietnam
Assuming the 90 days trading horizon Bentre Aquaproduct is expected to generate 1.12 times less return on investment than Japan Vietnam. But when comparing it to its historical volatility, Bentre Aquaproduct Import is 1.95 times less risky than Japan Vietnam. It trades about 0.22 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 372,000 in Japan Vietnam Medical on October 24, 2024 and sell it today you would earn a total of 18,000 from holding Japan Vietnam Medical or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Japan Vietnam Medical
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Japan Vietnam Medical |
Bentre Aquaproduct and Japan Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Japan Vietnam
The main advantage of trading using opposite Bentre Aquaproduct and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.| Bentre Aquaproduct vs. Petrovietnam Drilling Mud | Bentre Aquaproduct vs. Hung Hau Agricultural | Bentre Aquaproduct vs. Fecon Mining JSC | Bentre Aquaproduct vs. Transimex Transportation JSC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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