Correlation Between Bao Ngoc and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Ben Thanh 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 Bao Ngoc and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bao Ngoc Investment and Ben Thanh Rubber, you can compare the effects of market volatilities on Bao Ngoc and Ben Thanh 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 Bao Ngoc with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Ben Thanh.
Diversification Opportunities for Bao Ngoc and Ben Thanh
Very good diversification
The 3 months correlation between Bao and Ben is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and Bao Ngoc 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 Bao Ngoc Investment are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Ben Thanh go up and down completely randomly.
Pair Corralation between Bao Ngoc and Ben Thanh
Assuming the 90 days trading horizon Bao Ngoc Investment is expected to under-perform the Ben Thanh. In addition to that, Bao Ngoc is 1.63 times more volatile than Ben Thanh Rubber. It trades about -0.15 of its total potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.01 per unit of volatility. If you would invest 1,420,000 in Ben Thanh Rubber on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Ben Thanh Rubber or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Bao Ngoc Investment vs. Ben Thanh Rubber
Performance |
| Timeline |
| Bao Ngoc Investment |
| Ben Thanh Rubber |
Bao Ngoc and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bao Ngoc and Ben Thanh
The main advantage of trading using opposite Bao Ngoc and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bao Ngoc position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| Bao Ngoc vs. Mobile World Investment | Bao Ngoc vs. DOMESCO Medical Import | Bao Ngoc vs. Elcom Technology Communications | Bao Ngoc vs. SMC Investment Trading |
| Ben Thanh vs. Long An Food | Ben Thanh vs. Hoang Huy Investment | Ben Thanh vs. Nam Long Investment | Ben Thanh vs. Ba Ria Thermal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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