Correlation Between Binh Duong and Ha Long
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Ha Long 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 Ha Long 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 Ha Long Investment, you can compare the effects of market volatilities on Binh Duong and Ha Long 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 Ha Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Ha Long.
Diversification Opportunities for Binh Duong and Ha Long
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binh and HID is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and Ha Long Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Long Investment 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 Ha Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Long Investment has no effect on the direction of Binh Duong i.e., Binh Duong and Ha Long go up and down completely randomly.
Pair Corralation between Binh Duong and Ha Long
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.73 times more return on investment than Ha Long. However, Binh Duong Construction is 1.38 times less risky than Ha Long. It trades about 0.08 of its potential returns per unit of risk. Ha Long Investment is currently generating about -0.07 per unit of risk. If you would invest 605,000 in Binh Duong Construction on August 29, 2024 and sell it today you would earn a total of 77,000 from holding Binh Duong Construction or generate 12.73% 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. Ha Long Investment
Performance |
| Timeline |
| Binh Duong Construction |
| Ha Long Investment |
Binh Duong and Ha Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Ha Long
The main advantage of trading using opposite Binh Duong and Ha Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Ha Long 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 Ha Long will offset losses from the drop in Ha Long's long position.| Binh Duong vs. An Phat Plastic | Binh Duong vs. Plastic Additives JSC | Binh Duong vs. Hanoi Plastics JSC | Binh Duong vs. PVI Reinsurance Corp |
| Ha Long vs. FIT INVEST JSC | Ha Long vs. Damsan JSC | Ha Long vs. An Phat Plastic | Ha Long 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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