Correlation Between Fecon Mining and Ba Ria
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Ba Ria 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 Ba Ria 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 Ba Ria Thermal, you can compare the effects of market volatilities on Fecon Mining and Ba Ria 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 Ba Ria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Ba Ria.
Diversification Opportunities for Fecon Mining and Ba Ria
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fecon and BTP is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Ba Ria Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ba Ria Thermal 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 Ba Ria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ba Ria Thermal has no effect on the direction of Fecon Mining i.e., Fecon Mining and Ba Ria go up and down completely randomly.
Pair Corralation between Fecon Mining and Ba Ria
Assuming the 90 days trading horizon Fecon Mining is expected to generate 5.82 times less return on investment than Ba Ria. In addition to that, Fecon Mining is 1.24 times more volatile than Ba Ria Thermal. It trades about 0.0 of its total potential returns per unit of risk. Ba Ria Thermal is currently generating about 0.02 per unit of volatility. If you would invest 1,033,852 in Ba Ria Thermal on August 28, 2024 and sell it today you would earn a total of 81,148 from holding Ba Ria Thermal or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Fecon Mining JSC vs. Ba Ria Thermal
Performance |
| Timeline |
| Fecon Mining JSC |
| Ba Ria Thermal |
Fecon Mining and Ba Ria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Ba Ria
The main advantage of trading using opposite Fecon Mining and Ba Ria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Ba Ria 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 Ba Ria will offset losses from the drop in Ba Ria's long position.| Fecon Mining vs. Asia Commercial Bank | Fecon Mining vs. Vincom Retail JSC | Fecon Mining vs. BIDV Insurance Corp | Fecon Mining vs. Saigon Beer Alcohol |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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