Correlation Between AgriBank Securities and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both AgriBank Securities and Ben Thanh 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 AgriBank Securities and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriBank Securities JSC and Ben Thanh Rubber, you can compare the effects of market volatilities on AgriBank Securities and Ben Thanh 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 AgriBank Securities with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriBank Securities and Ben Thanh.
Diversification Opportunities for AgriBank Securities and Ben Thanh
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AgriBank and Ben is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AgriBank Securities JSC and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and AgriBank Securities 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 AgriBank Securities JSC are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of AgriBank Securities i.e., AgriBank Securities and Ben Thanh go up and down completely randomly.
Pair Corralation between AgriBank Securities and Ben Thanh
Assuming the 90 days trading horizon AgriBank Securities JSC is expected to generate 1.06 times more return on investment than Ben Thanh. However, AgriBank Securities is 1.06 times more volatile than Ben Thanh Rubber. It trades about 0.15 of its potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.06 per unit of risk. If you would invest 1,630,000 in AgriBank Securities JSC on November 8, 2024 and sell it today you would earn a total of 50,000 from holding AgriBank Securities JSC or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
AgriBank Securities JSC vs. Ben Thanh Rubber
Performance |
| Timeline |
| AgriBank Securities JSC |
| Ben Thanh Rubber |
AgriBank Securities and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriBank Securities and Ben Thanh
The main advantage of trading using opposite AgriBank Securities and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriBank Securities position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| AgriBank Securities vs. FIT INVEST JSC | AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities vs. APG Securities Joint |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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