Correlation Between Bao Ngoc and Van Dien
Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Van Dien 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 Van Dien 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 Van Dien Fused, you can compare the effects of market volatilities on Bao Ngoc and Van Dien 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 Van Dien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Van Dien.
Diversification Opportunities for Bao Ngoc and Van Dien
Pay attention - limited upside
The 3 months correlation between Bao and Van is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Van Dien Fused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Dien Fused 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 Van Dien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Dien Fused has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Van Dien go up and down completely randomly.
Pair Corralation between Bao Ngoc and Van Dien
If you would invest (100.00) in Van Dien Fused on November 4, 2024 and sell it today you would earn a total of 100.00 from holding Van Dien Fused or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bao Ngoc Investment vs. Van Dien Fused
Performance |
| Timeline |
| Bao Ngoc Investment |
| Van Dien Fused |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bao Ngoc and Van Dien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bao Ngoc and Van Dien
The main advantage of trading using opposite Bao Ngoc and Van Dien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bao Ngoc position performs unexpectedly, Van Dien 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 Van Dien will offset losses from the drop in Van Dien's long position.| Bao Ngoc vs. Vien Dong Investment | Bao Ngoc vs. Dinhvu Port Investment | Bao Ngoc vs. PV2 Investment JSC | Bao Ngoc vs. Danang Education Investment |
| Van Dien vs. Hanoi Beer Alcohol | Van Dien vs. Saigon Telecommunication Technologies | Van Dien vs. Hai An Transport | Van Dien vs. Hochiminh City Metal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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