Correlation Between Foreign Trade and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both Foreign Trade and Bentre Aquaproduct 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 Foreign Trade and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foreign Trade Development and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Foreign Trade and Bentre Aquaproduct 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 Foreign Trade with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Bentre Aquaproduct.
Diversification Opportunities for Foreign Trade and Bentre Aquaproduct
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foreign and Bentre is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Development and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and Foreign Trade 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 Foreign Trade Development are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Foreign Trade i.e., Foreign Trade and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between Foreign Trade and Bentre Aquaproduct
Assuming the 90 days trading horizon Foreign Trade is expected to generate 4.68 times less return on investment than Bentre Aquaproduct. In addition to that, Foreign Trade is 1.62 times more volatile than Bentre Aquaproduct Import. It trades about 0.01 of its total potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.04 per unit of volatility. If you would invest 2,992,781 in Bentre Aquaproduct Import on August 24, 2024 and sell it today you would earn a total of 962,219 from holding Bentre Aquaproduct Import or generate 32.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.2% |
| Values | Daily Returns |
Foreign Trade Development vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| Foreign Trade Development |
| Bentre Aquaproduct Import |
Foreign Trade and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foreign Trade and Bentre Aquaproduct
The main advantage of trading using opposite Foreign Trade and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.| Foreign Trade vs. FIT INVEST JSC | Foreign Trade vs. Damsan JSC | Foreign Trade vs. An Phat Plastic | Foreign Trade vs. APG Securities Joint |
| Bentre Aquaproduct vs. Foreign Trade Development | Bentre Aquaproduct vs. Taseco Air Services | Bentre Aquaproduct vs. Sao Ta Foods | Bentre Aquaproduct vs. FPT Digital Retail |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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