Correlation Between Khang Minh and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both Khang Minh and Ben Thanh 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 Khang Minh and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khang Minh Brick and Ben Thanh Rubber, you can compare the effects of market volatilities on Khang Minh and Ben Thanh 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 Khang Minh with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khang Minh and Ben Thanh.
Diversification Opportunities for Khang Minh and Ben Thanh
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khang and Ben is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Khang Minh Brick and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and Khang Minh 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 Khang Minh Brick are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of Khang Minh i.e., Khang Minh and Ben Thanh go up and down completely randomly.
Pair Corralation between Khang Minh and Ben Thanh
Assuming the 90 days trading horizon Khang Minh Brick is expected to under-perform the Ben Thanh. In addition to that, Khang Minh is 3.15 times more volatile than Ben Thanh Rubber. It trades about -0.24 of its total potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.03 per unit of volatility. If you would invest 1,345,286 in Ben Thanh Rubber on September 3, 2024 and sell it today you would earn a total of 59,714 from holding Ben Thanh Rubber or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khang Minh Brick vs. Ben Thanh Rubber
Performance |
| Timeline |
| Khang Minh Brick |
| Ben Thanh Rubber |
Khang Minh and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khang Minh and Ben Thanh
The main advantage of trading using opposite Khang Minh and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khang Minh position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| Khang Minh vs. Techno Agricultural Supplying | Khang Minh vs. Elcom Technology Communications | Khang Minh vs. Saigon Telecommunication Technologies | Khang Minh vs. Vinhomes JSC |
| Ben Thanh vs. Binh Duong Construction | Ben Thanh vs. 1369 Construction JSC | Ben Thanh vs. Dong Nai Plastic | Ben Thanh vs. Danang Education Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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