Correlation Between Ba Ria and CEO Group
Can any of the company-specific risk be diversified away by investing in both Ba Ria and CEO Group 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 CEO Group 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 CEO Group JSC, you can compare the effects of market volatilities on Ba Ria and CEO Group 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 CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and CEO Group.
Diversification Opportunities for Ba Ria and CEO Group
Average diversification
The 3 months correlation between BTP and CEO is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC 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 CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Ba Ria i.e., Ba Ria and CEO Group go up and down completely randomly.
Pair Corralation between Ba Ria and CEO Group
Assuming the 90 days trading horizon Ba Ria Thermal is expected to generate 0.53 times more return on investment than CEO Group. However, Ba Ria Thermal is 1.87 times less risky than CEO Group. It trades about 0.02 of its potential returns per unit of risk. CEO Group JSC is currently generating about 0.0 per unit of risk. If you would invest 1,060,856 in Ba Ria Thermal on October 30, 2024 and sell it today you would earn a total of 129,144 from holding Ba Ria Thermal or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ba Ria Thermal vs. CEO Group JSC
Performance |
| Timeline |
| Ba Ria Thermal |
| CEO Group JSC |
Ba Ria and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and CEO Group
The main advantage of trading using opposite Ba Ria and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| Ba Ria vs. FIT INVEST JSC | Ba Ria vs. Damsan JSC | Ba Ria vs. An Phat Plastic | Ba Ria vs. APG Securities Joint |
| CEO Group vs. HVC Investment and | CEO Group vs. Tng Investment And | CEO Group vs. PV2 Investment JSC | CEO Group vs. Thong Nhat Rubber |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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