Correlation Between Binh Duong and Camau Trading
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Camau Trading 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 Camau Trading 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 Camau Trading JSC, you can compare the effects of market volatilities on Binh Duong and Camau Trading 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 Camau Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Camau Trading.
Diversification Opportunities for Binh Duong and Camau Trading
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binh and Camau is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and Camau Trading JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camau Trading JSC 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 Camau Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camau Trading JSC has no effect on the direction of Binh Duong i.e., Binh Duong and Camau Trading go up and down completely randomly.
Pair Corralation between Binh Duong and Camau Trading
Assuming the 90 days trading horizon Binh Duong is expected to generate 1.05 times less return on investment than Camau Trading. But when comparing it to its historical volatility, Binh Duong Construction is 3.02 times less risky than Camau Trading. It trades about 0.54 of its potential returns per unit of risk. Camau Trading JSC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 837,000 in Camau Trading JSC on August 27, 2024 and sell it today you would earn a total of 73,000 from holding Camau Trading JSC or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Binh Duong Construction vs. Camau Trading JSC
Performance |
| Timeline |
| Binh Duong Construction |
| Camau Trading JSC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binh Duong and Camau Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Camau Trading
The main advantage of trading using opposite Binh Duong and Camau Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Camau Trading 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 Camau Trading will offset losses from the drop in Camau Trading'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 |
| Camau Trading vs. FIT INVEST JSC | Camau Trading vs. Damsan JSC | Camau Trading vs. An Phat Plastic | Camau Trading vs. APG Securities Joint |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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