Correlation Between Binh Duong and Din Capital
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Din Capital 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 Din Capital 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 Din Capital Investment, you can compare the effects of market volatilities on Binh Duong and Din Capital 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 Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Din Capital.
Diversification Opportunities for Binh Duong and Din Capital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Binh and Din is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital 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 Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of Binh Duong i.e., Binh Duong and Din Capital go up and down completely randomly.
Pair Corralation between Binh Duong and Din Capital
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.69 times more return on investment than Din Capital. However, Binh Duong Construction is 1.45 times less risky than Din Capital. It trades about 0.45 of its potential returns per unit of risk. Din Capital Investment is currently generating about 0.23 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 Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Binh Duong Construction vs. Din Capital Investment
Performance |
| Timeline |
| Binh Duong Construction |
| Din Capital Investment |
Binh Duong and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Din Capital
The main advantage of trading using opposite Binh Duong and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital'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 |
| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital vs. Alphanam ME |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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