Correlation Between Binh Duong and South Basic
Can any of the company-specific risk be diversified away by investing in both Binh Duong and South Basic 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 South Basic 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 South Basic Chemicals, you can compare the effects of market volatilities on Binh Duong and South Basic 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 South Basic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and South Basic.
Diversification Opportunities for Binh Duong and South Basic
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Binh and South is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and South Basic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Basic Chemicals 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 South Basic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Basic Chemicals has no effect on the direction of Binh Duong i.e., Binh Duong and South Basic go up and down completely randomly.
Pair Corralation between Binh Duong and South Basic
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.64 times more return on investment than South Basic. However, Binh Duong Construction is 1.56 times less risky than South Basic. It trades about 0.45 of its potential returns per unit of risk. South Basic Chemicals is currently generating about 0.06 per unit of risk. If you would invest 594,000 in Binh Duong Construction on September 2, 2024 and sell it today you would earn a total of 99,000 from holding Binh Duong Construction or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. South Basic Chemicals
Performance |
| Timeline |
| Binh Duong Construction |
| South Basic Chemicals |
Binh Duong and South Basic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and South Basic
The main advantage of trading using opposite Binh Duong and South Basic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, South Basic 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 South Basic will offset losses from the drop in South Basic's long position.| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. Alphanam ME |
| South Basic vs. Vu Dang Investment | South Basic vs. Thanh Dat Investment | South Basic vs. DOMESCO Medical Import | South Basic vs. Tien Giang Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |