Correlation Between Fecon Mining and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Fecon Mining 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 Fecon Mining and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fecon Mining JSC and Binh Duong Construction, you can compare the effects of market volatilities on Fecon Mining 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 Fecon Mining with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Binh Duong.
Diversification Opportunities for Fecon Mining and Binh Duong
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fecon and Binh is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining 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 Fecon Mining 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 Fecon Mining 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 Fecon Mining i.e., Fecon Mining and Binh Duong go up and down completely randomly.
Pair Corralation between Fecon Mining and Binh Duong
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the Binh Duong. In addition to that, Fecon Mining is 1.17 times more volatile than Binh Duong Construction. It trades about -0.07 of its total potential returns per unit of risk. Binh Duong Construction is currently generating about 0.01 per unit of volatility. If you would invest 714,000 in Binh Duong Construction on September 12, 2024 and sell it today you would earn a total of 23,000 from holding Binh Duong Construction or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. Binh Duong Construction
Performance |
| Timeline |
| Fecon Mining JSC |
| Binh Duong Construction |
Fecon Mining and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Binh Duong
The main advantage of trading using opposite Fecon Mining and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining 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.| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
| Binh Duong vs. Agriculture Printing and | Binh Duong vs. Viettel Construction JSC | Binh Duong vs. Ba Ria Thermal | Binh Duong vs. Fecon Mining JSC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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