Correlation Between Binh Duong and IDJ FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Binh Duong and IDJ FINANCIAL 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 IDJ FINANCIAL 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 IDJ FINANCIAL, you can compare the effects of market volatilities on Binh Duong and IDJ FINANCIAL 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 IDJ FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and IDJ FINANCIAL.
Diversification Opportunities for Binh Duong and IDJ FINANCIAL
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binh and IDJ is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and IDJ FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDJ FINANCIAL 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 IDJ FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDJ FINANCIAL has no effect on the direction of Binh Duong i.e., Binh Duong and IDJ FINANCIAL go up and down completely randomly.
Pair Corralation between Binh Duong and IDJ FINANCIAL
Assuming the 90 days trading horizon Binh Duong is expected to generate 3.72 times less return on investment than IDJ FINANCIAL. But when comparing it to its historical volatility, Binh Duong Construction is 2.12 times less risky than IDJ FINANCIAL. It trades about 0.01 of its potential returns per unit of risk. IDJ FINANCIAL is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 570,000 in IDJ FINANCIAL on September 12, 2024 and sell it today you would earn a total of 50,000 from holding IDJ FINANCIAL or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. IDJ FINANCIAL
Performance |
| Timeline |
| Binh Duong Construction |
| IDJ FINANCIAL |
Binh Duong and IDJ FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and IDJ FINANCIAL
The main advantage of trading using opposite Binh Duong and IDJ FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, IDJ FINANCIAL 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 IDJ FINANCIAL will offset losses from the drop in IDJ FINANCIAL's long position.| Binh Duong vs. Agriculture Printing and | Binh Duong vs. Viettel Construction JSC | Binh Duong vs. Ba Ria Thermal | Binh Duong vs. Fecon Mining JSC |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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