Correlation Between Nam Long and Ba Ria
Can any of the company-specific risk be diversified away by investing in both Nam Long and Ba Ria 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 Nam Long and Ba Ria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nam Long Investment and Ba Ria Thermal, you can compare the effects of market volatilities on Nam Long and Ba Ria 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 Nam Long with a short position of Ba Ria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nam Long and Ba Ria.
Diversification Opportunities for Nam Long and Ba Ria
Pay attention - limited upside
The 3 months correlation between Nam and BTP is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nam Long Investment and Ba Ria Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ba Ria Thermal and Nam Long 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 Nam Long Investment are associated (or correlated) with Ba Ria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ba Ria Thermal has no effect on the direction of Nam Long i.e., Nam Long and Ba Ria go up and down completely randomly.
Pair Corralation between Nam Long and Ba Ria
Assuming the 90 days trading horizon Nam Long Investment is expected to under-perform the Ba Ria. In addition to that, Nam Long is 1.51 times more volatile than Ba Ria Thermal. It trades about -0.24 of its total potential returns per unit of risk. Ba Ria Thermal is currently generating about 0.2 per unit of volatility. If you would invest 1,185,000 in Ba Ria Thermal on November 28, 2024 and sell it today you would earn a total of 35,000 from holding Ba Ria Thermal or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nam Long Investment vs. Ba Ria Thermal
Performance |
| Timeline |
| Nam Long Investment |
| Ba Ria Thermal |
Nam Long and Ba Ria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nam Long and Ba Ria
The main advantage of trading using opposite Nam Long and Ba Ria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nam Long position performs unexpectedly, Ba Ria 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 Ba Ria will offset losses from the drop in Ba Ria's long position.| Nam Long vs. Asia Commercial Bank | Nam Long vs. AgriBank Securities JSC | Nam Long vs. Nafoods Group JSC | Nam Long vs. Vietnam Technological And |
| Ba Ria vs. Vietnam Construction JSC | Ba Ria vs. Techno Agricultural Supplying | Ba Ria vs. DIC Holdings Construction | Ba Ria vs. Saigon Machinery Spare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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