Correlation Between Binh Duong and DOMESCO Medical
Can any of the company-specific risk be diversified away by investing in both Binh Duong and DOMESCO Medical 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 DOMESCO Medical 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 DOMESCO Medical Import, you can compare the effects of market volatilities on Binh Duong and DOMESCO Medical 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 DOMESCO Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and DOMESCO Medical.
Diversification Opportunities for Binh Duong and DOMESCO Medical
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binh and DOMESCO is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and DOMESCO Medical Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMESCO Medical Import 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 DOMESCO Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMESCO Medical Import has no effect on the direction of Binh Duong i.e., Binh Duong and DOMESCO Medical go up and down completely randomly.
Pair Corralation between Binh Duong and DOMESCO Medical
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.97 times more return on investment than DOMESCO Medical. However, Binh Duong Construction is 1.03 times less risky than DOMESCO Medical. It trades about 0.54 of its potential returns per unit of risk. DOMESCO Medical Import is currently generating about -0.07 per unit of risk. If you would invest 612,000 in Binh Duong Construction on September 13, 2024 and sell it today you would earn a total of 125,000 from holding Binh Duong Construction or generate 20.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Binh Duong Construction vs. DOMESCO Medical Import
Performance |
| Timeline |
| Binh Duong Construction |
| DOMESCO Medical Import |
Binh Duong and DOMESCO Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and DOMESCO Medical
The main advantage of trading using opposite Binh Duong and DOMESCO Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, DOMESCO Medical 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 DOMESCO Medical will offset losses from the drop in DOMESCO Medical'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 |
| DOMESCO Medical vs. Bich Chi Food | DOMESCO Medical vs. Vu Dang Investment | DOMESCO Medical vs. Sao Ta Foods | DOMESCO Medical vs. HUD1 Investment and |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |