Correlation Between Viettel Construction and Binhthuan Agriculture
Can any of the company-specific risk be diversified away by investing in both Viettel Construction and Binhthuan Agriculture 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 Viettel Construction and Binhthuan Agriculture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viettel Construction JSC and Binhthuan Agriculture Services, you can compare the effects of market volatilities on Viettel Construction and Binhthuan Agriculture 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 Viettel Construction with a short position of Binhthuan Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viettel Construction and Binhthuan Agriculture.
Diversification Opportunities for Viettel Construction and Binhthuan Agriculture
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viettel and Binhthuan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Viettel Construction JSC and Binhthuan Agriculture Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binhthuan Agriculture and Viettel 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 Viettel Construction JSC are associated (or correlated) with Binhthuan Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binhthuan Agriculture has no effect on the direction of Viettel Construction i.e., Viettel Construction and Binhthuan Agriculture go up and down completely randomly.
Pair Corralation between Viettel Construction and Binhthuan Agriculture
Assuming the 90 days trading horizon Viettel Construction JSC is expected to generate 1.04 times more return on investment than Binhthuan Agriculture. However, Viettel Construction is 1.04 times more volatile than Binhthuan Agriculture Services. It trades about 0.09 of its potential returns per unit of risk. Binhthuan Agriculture Services is currently generating about -0.04 per unit of risk. If you would invest 4,754,712 in Viettel Construction JSC on August 27, 2024 and sell it today you would earn a total of 7,135,288 from holding Viettel Construction JSC or generate 150.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viettel Construction JSC vs. Binhthuan Agriculture Services
Performance |
| Timeline |
| Viettel Construction JSC |
| Binhthuan Agriculture |
Viettel Construction and Binhthuan Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viettel Construction and Binhthuan Agriculture
The main advantage of trading using opposite Viettel Construction and Binhthuan Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viettel Construction position performs unexpectedly, Binhthuan Agriculture 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 Binhthuan Agriculture will offset losses from the drop in Binhthuan Agriculture's long position.| Viettel Construction vs. FIT INVEST JSC | Viettel Construction vs. Damsan JSC | Viettel Construction vs. An Phat Plastic | Viettel Construction vs. APG Securities Joint |
| Binhthuan Agriculture vs. FIT INVEST JSC | Binhthuan Agriculture vs. Damsan JSC | Binhthuan Agriculture vs. An Phat Plastic | Binhthuan Agriculture vs. APG Securities Joint |
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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