Correlation Between Benguet Corp and Monde Nissin
Can any of the company-specific risk be diversified away by investing in both Benguet Corp and Monde Nissin 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 Benguet Corp and Monde Nissin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benguet Corp A and Monde Nissin Corp, you can compare the effects of market volatilities on Benguet Corp and Monde Nissin 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 Benguet Corp with a short position of Monde Nissin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Monde Nissin.
Diversification Opportunities for Benguet Corp and Monde Nissin
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Benguet and Monde is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A and Monde Nissin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monde Nissin Corp and Benguet Corp 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 Benguet Corp A are associated (or correlated) with Monde Nissin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monde Nissin Corp has no effect on the direction of Benguet Corp i.e., Benguet Corp and Monde Nissin go up and down completely randomly.
Pair Corralation between Benguet Corp and Monde Nissin
Assuming the 90 days trading horizon Benguet Corp A is expected to generate 1.48 times more return on investment than Monde Nissin. However, Benguet Corp is 1.48 times more volatile than Monde Nissin Corp. It trades about 0.0 of its potential returns per unit of risk. Monde Nissin Corp is currently generating about -0.28 per unit of risk. If you would invest 384.00 in Benguet Corp A on August 25, 2024 and sell it today you would lose (6.00) from holding Benguet Corp A or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Benguet Corp A vs. Monde Nissin Corp
Performance |
| Timeline |
| Benguet Corp A |
| Monde Nissin Corp |
Benguet Corp and Monde Nissin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benguet Corp and Monde Nissin
The main advantage of trading using opposite Benguet Corp and Monde Nissin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp position performs unexpectedly, Monde Nissin 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 Monde Nissin will offset losses from the drop in Monde Nissin's long position.| Benguet Corp vs. East West Banking | Benguet Corp vs. Union Bank of | Benguet Corp vs. Converge Information Communications | Benguet Corp vs. Crown Asia Chemicals |
| Monde Nissin vs. Union Bank of | Monde Nissin vs. Apex Mining Co | Monde Nissin vs. COL Financial Group | Monde Nissin vs. Atlas Consolidated Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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