Correlation Between Binh Duong and An Phat
Can any of the company-specific risk be diversified away by investing in both Binh Duong and An Phat 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 Binh Duong and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Duong Construction and An Phat Plastic, you can compare the effects of market volatilities on Binh Duong and An Phat 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 Binh Duong with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and An Phat.
Diversification Opportunities for Binh Duong and An Phat
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binh and AAA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and Binh Duong 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 Binh Duong Construction are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of Binh Duong i.e., Binh Duong and An Phat go up and down completely randomly.
Pair Corralation between Binh Duong and An Phat
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.98 times more return on investment than An Phat. However, Binh Duong Construction is 1.02 times less risky than An Phat. It trades about 0.5 of its potential returns per unit of risk. An Phat Plastic is currently generating about -0.22 per unit of risk. If you would invest 566,000 in Binh Duong Construction on August 24, 2024 and sell it today you would earn a total of 113,000 from holding Binh Duong Construction or generate 19.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. An Phat Plastic
Performance |
| Timeline |
| Binh Duong Construction |
| An Phat Plastic |
Binh Duong and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and An Phat
The main advantage of trading using opposite Binh Duong and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. APG Securities Joint |
| An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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