Correlation Between 1369 Construction and Binh Duong
Can any of the company-specific risk be diversified away by investing in both 1369 Construction and Binh Duong 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 1369 Construction and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1369 Construction JSC and Binh Duong Construction, you can compare the effects of market volatilities on 1369 Construction and Binh Duong 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 1369 Construction with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and Binh Duong.
Diversification Opportunities for 1369 Construction and Binh Duong
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1369 and Binh is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC and Binh Duong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Construction and 1369 Construction 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 1369 Construction JSC are associated (or correlated) with Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Construction has no effect on the direction of 1369 Construction i.e., 1369 Construction and Binh Duong go up and down completely randomly.
Pair Corralation between 1369 Construction and Binh Duong
Assuming the 90 days trading horizon 1369 Construction JSC is expected to under-perform the Binh Duong. In addition to that, 1369 Construction is 1.01 times more volatile than Binh Duong Construction. It trades about -0.09 of its total potential returns per unit of risk. Binh Duong Construction is currently generating about 0.5 per unit of volatility. If you would invest 589,000 in Binh Duong Construction on September 3, 2024 and sell it today you would earn a total of 104,000 from holding Binh Duong Construction or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
1369 Construction JSC vs. Binh Duong Construction
Performance |
| Timeline |
| 1369 Construction JSC |
| Binh Duong Construction |
1369 Construction and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and Binh Duong
The main advantage of trading using opposite 1369 Construction and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. Alphanam ME |
| Binh Duong vs. Tng Investment And | Binh Duong vs. Elcom Technology Communications | Binh Duong vs. HVC Investment and | Binh Duong vs. Techno Agricultural Supplying |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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