Correlation Between Ipa Investments and Bao Ngoc
Can any of the company-specific risk be diversified away by investing in both Ipa Investments and Bao Ngoc 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 Ipa Investments and Bao Ngoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipa Investments Group and Bao Ngoc Investment, you can compare the effects of market volatilities on Ipa Investments and Bao Ngoc 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 Ipa Investments with a short position of Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipa Investments and Bao Ngoc.
Diversification Opportunities for Ipa Investments and Bao Ngoc
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ipa and Bao is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ipa Investments Group and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment and Ipa Investments 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 Ipa Investments Group are associated (or correlated) with Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of Ipa Investments i.e., Ipa Investments and Bao Ngoc go up and down completely randomly.
Pair Corralation between Ipa Investments and Bao Ngoc
Assuming the 90 days trading horizon Ipa Investments Group is expected to under-perform the Bao Ngoc. But the stock apears to be less risky and, when comparing its historical volatility, Ipa Investments Group is 2.09 times less risky than Bao Ngoc. The stock trades about -0.08 of its potential returns per unit of risk. The Bao Ngoc Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 944,000 in Bao Ngoc Investment on September 2, 2024 and sell it today you would earn a total of 16,000 from holding Bao Ngoc Investment or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ipa Investments Group vs. Bao Ngoc Investment
Performance |
| Timeline |
| Ipa Investments Group |
| Bao Ngoc Investment |
Ipa Investments and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipa Investments and Bao Ngoc
The main advantage of trading using opposite Ipa Investments and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipa Investments position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.| Ipa Investments vs. Development Investment Construction | Ipa Investments vs. LDG Investment JSC | Ipa Investments vs. Nafoods Group JSC | Ipa Investments vs. Vina2 Investment and |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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