Correlation Between Binh Duong and RangDong Plastic
Can any of the company-specific risk be diversified away by investing in both Binh Duong and RangDong Plastic 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 RangDong Plastic 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 RangDong Plastic JSC, you can compare the effects of market volatilities on Binh Duong and RangDong Plastic 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 RangDong Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and RangDong Plastic.
Diversification Opportunities for Binh Duong and RangDong Plastic
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binh and RangDong is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and RangDong Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RangDong Plastic JSC 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 RangDong Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RangDong Plastic JSC has no effect on the direction of Binh Duong i.e., Binh Duong and RangDong Plastic go up and down completely randomly.
Pair Corralation between Binh Duong and RangDong Plastic
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 0.49 times more return on investment than RangDong Plastic. However, Binh Duong Construction is 2.02 times less risky than RangDong Plastic. It trades about 0.02 of its potential returns per unit of risk. RangDong Plastic JSC is currently generating about -0.09 per unit of risk. If you would invest 617,000 in Binh Duong Construction on August 29, 2024 and sell it today you would earn a total of 63,000 from holding Binh Duong Construction or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. RangDong Plastic JSC
Performance |
| Timeline |
| Binh Duong Construction |
| RangDong Plastic JSC |
Binh Duong and RangDong Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and RangDong Plastic
The main advantage of trading using opposite Binh Duong and RangDong Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, RangDong Plastic 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 RangDong Plastic will offset losses from the drop in RangDong Plastic'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 |
| RangDong Plastic vs. FIT INVEST JSC | RangDong Plastic vs. Damsan JSC | RangDong Plastic vs. An Phat Plastic | RangDong Plastic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |