Correlation Between Bentre Aquaproduct and Vietnam Petroleum
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and Vietnam Petroleum 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 Vietnam Petroleum 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 Vietnam Petroleum Transport, you can compare the effects of market volatilities on Bentre Aquaproduct and Vietnam Petroleum 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 Vietnam Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Vietnam Petroleum.
Diversification Opportunities for Bentre Aquaproduct and Vietnam Petroleum
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Vietnam is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and Vietnam Petroleum Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Petroleum 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 Vietnam Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Petroleum has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and Vietnam Petroleum go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Vietnam Petroleum
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.71 times more return on investment than Vietnam Petroleum. However, Bentre Aquaproduct Import is 1.4 times less risky than Vietnam Petroleum. It trades about 0.08 of its potential returns per unit of risk. Vietnam Petroleum Transport is currently generating about -0.03 per unit of risk. If you would invest 3,465,000 in Bentre Aquaproduct Import on September 3, 2024 and sell it today you would earn a total of 485,000 from holding Bentre Aquaproduct Import or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.74% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Vietnam Petroleum Transport
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Vietnam Petroleum |
Bentre Aquaproduct and Vietnam Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Vietnam Petroleum
The main advantage of trading using opposite Bentre Aquaproduct and Vietnam Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, Vietnam Petroleum 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 Vietnam Petroleum will offset losses from the drop in Vietnam Petroleum'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 |
| Vietnam Petroleum vs. FIT INVEST JSC | Vietnam Petroleum vs. Damsan JSC | Vietnam Petroleum vs. An Phat Plastic | Vietnam Petroleum 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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