Correlation Between Ba Ria and Ha Do
Can any of the company-specific risk be diversified away by investing in both Ba Ria and Ha Do 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 Ha Do 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 Ha Do Group, you can compare the effects of market volatilities on Ba Ria and Ha Do 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 Ha Do. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ba Ria and Ha Do.
Diversification Opportunities for Ba Ria and Ha Do
Modest diversification
The 3 months correlation between BTP and HDG is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ba Ria Thermal and Ha Do Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ha Do Group 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 Ha Do. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ha Do Group has no effect on the direction of Ba Ria i.e., Ba Ria and Ha Do go up and down completely randomly.
Pair Corralation between Ba Ria and Ha Do
Assuming the 90 days trading horizon Ba Ria Thermal is expected to under-perform the Ha Do. But the stock apears to be less risky and, when comparing its historical volatility, Ba Ria Thermal is 1.98 times less risky than Ha Do. The stock trades about -0.6 of its potential returns per unit of risk. The Ha Do Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,670,000 in Ha Do Group on August 28, 2024 and sell it today you would earn a total of 185,000 from holding Ha Do Group or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ba Ria Thermal vs. Ha Do Group
Performance |
| Timeline |
| Ba Ria Thermal |
| Ha Do Group |
Ba Ria and Ha Do Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ba Ria and Ha Do
The main advantage of trading using opposite Ba Ria and Ha Do positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ba Ria position performs unexpectedly, Ha Do 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 Ha Do will offset losses from the drop in Ha Do'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 |
| Ha Do vs. Military Insurance Corp | Ha Do vs. Development Investment Construction | Ha Do vs. Ba Ria Thermal | Ha Do vs. Tien Giang Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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