Correlation Between Ba Ria and Atesco Industrial
Can any of the company-specific risk be diversified away by investing in both Ba Ria and Atesco Industrial 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 Ba Ria and Atesco Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ba Ria Thermal and Atesco Industrial Cartering, you can compare the effects of market volatilities on Ba Ria and Atesco Industrial 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 Ba Ria with a short position of Atesco Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and Atesco Industrial.
Diversification Opportunities for Ba Ria and Atesco Industrial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTP and Atesco is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and Atesco Industrial Cartering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atesco Industrial and Ba Ria 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 Ba Ria Thermal are associated (or correlated) with Atesco Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atesco Industrial has no effect on the direction of Ba Ria i.e., Ba Ria and Atesco Industrial go up and down completely randomly.
Pair Corralation between Ba Ria and Atesco Industrial
Assuming the 90 days trading horizon Ba Ria Thermal is expected to generate 0.08 times more return on investment than Atesco Industrial. However, Ba Ria Thermal is 12.17 times less risky than Atesco Industrial. It trades about -0.06 of its potential returns per unit of risk. Atesco Industrial Cartering is currently generating about -0.23 per unit of risk. If you would invest 1,200,000 in Ba Ria Thermal on October 29, 2024 and sell it today you would lose (10,000) from holding Ba Ria Thermal or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Ba Ria Thermal vs. Atesco Industrial Cartering
Performance |
| Timeline |
| Ba Ria Thermal |
| Atesco Industrial |
Ba Ria and Atesco Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and Atesco Industrial
The main advantage of trading using opposite Ba Ria and Atesco Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, Atesco Industrial 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 Atesco Industrial will offset losses from the drop in Atesco Industrial's long position.| Ba Ria vs. Post and Telecommunications | Ba Ria vs. Mobile World Investment | Ba Ria vs. 1369 Construction JSC | Ba Ria vs. Sao Ta Foods |
| Atesco Industrial vs. Binh Duong Construction | Atesco Industrial vs. DOMESCO Medical Import | Atesco Industrial vs. Tri Viet Management | Atesco Industrial vs. Elcom Technology Communications |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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