Correlation Between Bentre Aquaproduct and Vu Dang
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Vu Dang 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 Vu Dang 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 Vu Dang Investment, you can compare the effects of market volatilities on Bentre Aquaproduct and Vu Dang 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 Vu Dang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Vu Dang.
Diversification Opportunities for Bentre Aquaproduct and Vu Dang
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and SVD is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Vu Dang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vu Dang Investment 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 Vu Dang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vu Dang Investment has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Vu Dang go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Vu Dang
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.95 times more return on investment than Vu Dang. However, Bentre Aquaproduct Import is 1.05 times less risky than Vu Dang. It trades about 0.04 of its potential returns per unit of risk. Vu Dang Investment is currently generating about 0.02 per unit of risk. If you would invest 3,234,489 in Bentre Aquaproduct Import on November 1, 2024 and sell it today you would earn a total of 815,511 from holding Bentre Aquaproduct Import or generate 25.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.68% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Vu Dang Investment
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Vu Dang Investment |
Bentre Aquaproduct and Vu Dang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Vu Dang
The main advantage of trading using opposite Bentre Aquaproduct and Vu Dang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Vu Dang 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 Vu Dang will offset losses from the drop in Vu Dang's long position.| Bentre Aquaproduct vs. Techcom Vietnam REIT | Bentre Aquaproduct vs. DIC Holdings Construction | Bentre Aquaproduct vs. Kien Giang Construction | Bentre Aquaproduct vs. 1369 Construction JSC |
| Vu Dang vs. TDT Investment and | Vu Dang vs. Military Insurance Corp | Vu Dang vs. Viet Thanh Plastic | Vu Dang vs. Picomat Plastic 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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