Correlation Between Bentre Aquaproduct and Saigon Machinery
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Saigon Machinery 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 Saigon Machinery 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 Saigon Machinery Spare, you can compare the effects of market volatilities on Bentre Aquaproduct and Saigon Machinery 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 Saigon Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Saigon Machinery.
Diversification Opportunities for Bentre Aquaproduct and Saigon Machinery
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Saigon is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Saigon Machinery Spare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Machinery Spare 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 Saigon Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Machinery Spare has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Saigon Machinery go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Saigon Machinery
Assuming the 90 days trading horizon Bentre Aquaproduct is expected to generate 3662.22 times less return on investment than Saigon Machinery. But when comparing it to its historical volatility, Bentre Aquaproduct Import is 7.37 times less risky than Saigon Machinery. It trades about 0.0 of its potential returns per unit of risk. Saigon Machinery Spare is currently generating about 1.03 of returns per unit of risk over similar time horizon. If you would invest 1,090,000 in Saigon Machinery Spare on October 16, 2024 and sell it today you would earn a total of 510,000 from holding Saigon Machinery Spare or generate 46.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.59% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Saigon Machinery Spare
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Saigon Machinery Spare |
Bentre Aquaproduct and Saigon Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Saigon Machinery
The main advantage of trading using opposite Bentre Aquaproduct and Saigon Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Saigon Machinery 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 Saigon Machinery will offset losses from the drop in Saigon Machinery's long position.| Bentre Aquaproduct vs. Saigon Telecommunication Technologies | Bentre Aquaproduct vs. POST TELECOMMU | Bentre Aquaproduct vs. Tien Giang Investment | Bentre Aquaproduct vs. Petrovietnam Drilling Mud |
| Saigon Machinery vs. FIT INVEST JSC | Saigon Machinery vs. Damsan JSC | Saigon Machinery vs. An Phat Plastic | Saigon Machinery 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |