Correlation Between HUD1 Investment and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both HUD1 Investment 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 HUD1 Investment and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUD1 Investment and and Ben Thanh Rubber, you can compare the effects of market volatilities on HUD1 Investment 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 HUD1 Investment with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUD1 Investment and Ben Thanh.
Diversification Opportunities for HUD1 Investment and Ben Thanh
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUD1 and Ben is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HUD1 Investment and 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 HUD1 Investment 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 HUD1 Investment and 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 HUD1 Investment i.e., HUD1 Investment and Ben Thanh go up and down completely randomly.
Pair Corralation between HUD1 Investment and Ben Thanh
Assuming the 90 days trading horizon HUD1 Investment and is expected to under-perform the Ben Thanh. In addition to that, HUD1 Investment is 5.13 times more volatile than Ben Thanh Rubber. It trades about -0.03 of its total potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.11 per unit of volatility. If you would invest 1,405,000 in Ben Thanh Rubber on October 12, 2024 and sell it today you would earn a total of 35,000 from holding Ben Thanh Rubber or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
HUD1 Investment and vs. Ben Thanh Rubber
Performance |
| Timeline |
| HUD1 Investment |
| Ben Thanh Rubber |
HUD1 Investment and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUD1 Investment and Ben Thanh
The main advantage of trading using opposite HUD1 Investment and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUD1 Investment 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.| HUD1 Investment vs. FIT INVEST JSC | HUD1 Investment vs. Damsan JSC | HUD1 Investment vs. An Phat Plastic | HUD1 Investment vs. APG Securities Joint |
| Ben Thanh vs. Hochiminh City Metal | Ben Thanh vs. Vietnam JSCmmercial Bank | Ben Thanh vs. Elcom Technology Communications | Ben Thanh vs. Ba Ria Thermal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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