Correlation Between Bao Ngoc and Innovative Technology
Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Innovative Technology 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 Innovative Technology 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 Innovative Technology Development, you can compare the effects of market volatilities on Bao Ngoc and Innovative Technology 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 Innovative Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Innovative Technology.
Diversification Opportunities for Bao Ngoc and Innovative Technology
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bao and Innovative is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Innovative Technology Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Technology 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 Innovative Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Technology has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Innovative Technology go up and down completely randomly.
Pair Corralation between Bao Ngoc and Innovative Technology
Assuming the 90 days trading horizon Bao Ngoc Investment is expected to generate 1.15 times more return on investment than Innovative Technology. However, Bao Ngoc is 1.15 times more volatile than Innovative Technology Development. It trades about 0.04 of its potential returns per unit of risk. Innovative Technology Development is currently generating about -0.09 per unit of risk. If you would invest 944,000 in Bao Ngoc Investment on September 2, 2024 and sell it today you would earn a total of 16,000 from holding Bao Ngoc Investment or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bao Ngoc Investment vs. Innovative Technology Developm
Performance |
| Timeline |
| Bao Ngoc Investment |
| Innovative Technology |
Bao Ngoc and Innovative Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bao Ngoc and Innovative Technology
The main advantage of trading using opposite Bao Ngoc and Innovative Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bao Ngoc position performs unexpectedly, Innovative Technology 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 Innovative Technology will offset losses from the drop in Innovative Technology's long position.| Bao Ngoc vs. Innovative Technology Development | Bao Ngoc vs. Saigon Viendong Technology | Bao Ngoc vs. Petrovietnam Drilling Mud | Bao Ngoc vs. Construction And Investment |
| Innovative Technology vs. Saigon Viendong Technology | Innovative Technology vs. Techcom Vietnam REIT | Innovative Technology vs. Sea Air Freight | Innovative Technology vs. Century Synthetic Fiber |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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