Correlation Between Binh Duong and Mobile World
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Mobile World 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 Mobile World 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 Mobile World Investment, you can compare the effects of market volatilities on Binh Duong and Mobile World 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 Mobile World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Mobile World.
Diversification Opportunities for Binh Duong and Mobile World
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binh and Mobile is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and Mobile World Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile World 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 Mobile World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile World Investment has no effect on the direction of Binh Duong i.e., Binh Duong and Mobile World go up and down completely randomly.
Pair Corralation between Binh Duong and Mobile World
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.99 times more return on investment than Mobile World. However, Binh Duong Construction is 1.01 times less risky than Mobile World. It trades about 0.51 of its potential returns per unit of risk. Mobile World Investment is currently generating about -0.25 per unit of risk. If you would invest 580,000 in Binh Duong Construction on September 1, 2024 and sell it today you would earn a total of 113,000 from holding Binh Duong Construction or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. Mobile World Investment
Performance |
| Timeline |
| Binh Duong Construction |
| Mobile World Investment |
Binh Duong and Mobile World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Mobile World
The main advantage of trading using opposite Binh Duong and Mobile World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Mobile World 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 Mobile World will offset losses from the drop in Mobile World'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 |
| Mobile World vs. POST TELECOMMU | Mobile World vs. RangDong Plastic JSC | Mobile World vs. Sao Vang Rubber | Mobile World vs. Danang Rubber JSC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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