Correlation Between Sao Ta and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both Sao Ta 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 Sao Ta and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Ta Foods and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Sao Ta 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 Sao Ta with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Ta and Bentre Aquaproduct.
Diversification Opportunities for Sao Ta and Bentre Aquaproduct
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sao and Bentre is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sao Ta Foods 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 Sao Ta 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 Sao Ta Foods 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 Sao Ta i.e., Sao Ta and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between Sao Ta and Bentre Aquaproduct
Assuming the 90 days trading horizon Sao Ta is expected to generate 1.37 times less return on investment than Bentre Aquaproduct. But when comparing it to its historical volatility, Sao Ta Foods is 1.71 times less risky than Bentre Aquaproduct. It trades about 0.06 of its potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.04 of returns per unit of risk over similar time horizon. 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 | 68.9% |
| Values | Daily Returns |
Sao Ta Foods vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| Sao Ta Foods |
| Bentre Aquaproduct Import |
Sao Ta and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sao Ta and Bentre Aquaproduct
The main advantage of trading using opposite Sao Ta and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Ta 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.| Sao Ta vs. FIT INVEST JSC | Sao Ta vs. Damsan JSC | Sao Ta vs. An Phat Plastic | Sao Ta 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |