Correlation Between Binh Minh and Post
Can any of the company-specific risk be diversified away by investing in both Binh Minh and Post 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 Minh and Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Minh Plastics and Post and Telecommunications, you can compare the effects of market volatilities on Binh Minh and Post 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 Minh with a short position of Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Minh and Post.
Diversification Opportunities for Binh Minh and Post
Very good diversification
The 3 months correlation between Binh and Post is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Binh Minh Plastics and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni and Binh Minh 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 Minh Plastics are associated (or correlated) with Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Binh Minh i.e., Binh Minh and Post go up and down completely randomly.
Pair Corralation between Binh Minh and Post
Assuming the 90 days trading horizon Binh Minh Plastics is expected to generate 0.97 times more return on investment than Post. However, Binh Minh Plastics is 1.03 times less risky than Post. It trades about 0.08 of its potential returns per unit of risk. Post and Telecommunications is currently generating about -0.06 per unit of risk. If you would invest 10,046,600 in Binh Minh Plastics on October 12, 2024 and sell it today you would earn a total of 3,453,400 from holding Binh Minh Plastics or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Minh Plastics vs. Post and Telecommunications
Performance |
| Timeline |
| Binh Minh Plastics |
| Post and Telecommuni |
Binh Minh and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Minh and Post
The main advantage of trading using opposite Binh Minh and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Minh position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Binh Minh vs. Post and Telecommunications | Binh Minh vs. Military Insurance Corp | Binh Minh vs. VTC Telecommunications JSC | Binh Minh vs. Din Capital Investment |
| Post vs. Vietnam JSCmmercial Bank | Post vs. VTC Telecommunications JSC | Post vs. POST TELECOMMU | Post vs. IDJ FINANCIAL |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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