Correlation Between Mechanics Construction and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Mechanics Construction and Binh Duong 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 Mechanics Construction and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mechanics Construction and and Binh Duong Construction, you can compare the effects of market volatilities on Mechanics Construction and Binh Duong 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 Mechanics Construction with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mechanics Construction and Binh Duong.
Diversification Opportunities for Mechanics Construction and Binh Duong
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mechanics and Binh is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mechanics Construction and and Binh Duong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Construction and Mechanics Construction 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 Mechanics Construction and are associated (or correlated) with Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Construction has no effect on the direction of Mechanics Construction i.e., Mechanics Construction and Binh Duong go up and down completely randomly.
Pair Corralation between Mechanics Construction and Binh Duong
Assuming the 90 days trading horizon Mechanics Construction and is expected to under-perform the Binh Duong. But the stock apears to be less risky and, when comparing its historical volatility, Mechanics Construction and is 1.18 times less risky than Binh Duong. The stock trades about -0.15 of its potential returns per unit of risk. The Binh Duong Construction is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 594,000 in Binh Duong Construction on September 2, 2024 and sell it today you would earn a total of 99,000 from holding Binh Duong Construction or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Mechanics Construction and vs. Binh Duong Construction
Performance |
| Timeline |
| Mechanics Construction |
| Binh Duong Construction |
Mechanics Construction and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mechanics Construction and Binh Duong
The main advantage of trading using opposite Mechanics Construction and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mechanics Construction position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| Mechanics Construction vs. FIT INVEST JSC | Mechanics Construction vs. Damsan JSC | Mechanics Construction vs. An Phat Plastic | Mechanics Construction vs. Alphanam ME |
| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. Alphanam ME |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |