Correlation Between Bentre Aquaproduct and Quang Nam
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Quang Nam 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 Quang Nam 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 Quang Nam Transportation, you can compare the effects of market volatilities on Bentre Aquaproduct and Quang Nam 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 Quang Nam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Quang Nam.
Diversification Opportunities for Bentre Aquaproduct and Quang Nam
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bentre and Quang is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Quang Nam Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quang Nam Transportation 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 Quang Nam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quang Nam Transportation has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Quang Nam go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Quang Nam
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to under-perform the Quang Nam. But the stock apears to be less risky and, when comparing its historical volatility, Bentre Aquaproduct Import is 11.02 times less risky than Quang Nam. The stock trades about -0.21 of its potential returns per unit of risk. The Quang Nam Transportation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,560,000 in Quang Nam Transportation on August 31, 2024 and sell it today you would lose (10,000) from holding Quang Nam Transportation or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 52.63% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Quang Nam Transportation
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Quang Nam Transportation |
Bentre Aquaproduct and Quang Nam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Quang Nam
The main advantage of trading using opposite Bentre Aquaproduct and Quang Nam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Quang Nam 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 Quang Nam will offset losses from the drop in Quang Nam'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 |
| Quang Nam vs. FIT INVEST JSC | Quang Nam vs. Damsan JSC | Quang Nam vs. An Phat Plastic | Quang Nam 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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