Correlation Between POT and Binh Duong
Can any of the company-specific risk be diversified away by investing in both POT 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 POT and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PostTelecommunication Equipment and Binh Duong Trade, you can compare the effects of market volatilities on POT 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 POT with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of POT and Binh Duong.
Diversification Opportunities for POT and Binh Duong
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between POT and Binh is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PostTelecommunication Equipmen and Binh Duong Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Trade and POT 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 PostTelecommunication Equipment 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 Trade has no effect on the direction of POT i.e., POT and Binh Duong go up and down completely randomly.
Pair Corralation between POT and Binh Duong
Assuming the 90 days trading horizon PostTelecommunication Equipment is expected to under-perform the Binh Duong. In addition to that, POT is 1.98 times more volatile than Binh Duong Trade. It trades about -0.01 of its total potential returns per unit of risk. Binh Duong Trade is currently generating about 0.03 per unit of volatility. If you would invest 984,000 in Binh Duong Trade on September 15, 2024 and sell it today you would earn a total of 136,000 from holding Binh Duong Trade or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.55% |
| Values | Daily Returns |
PostTelecommunication Equipmen vs. Binh Duong Trade
Performance |
| Timeline |
| PostTelecommunication |
| Binh Duong Trade |
POT and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POT and Binh Duong
The main advantage of trading using opposite POT and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POT 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.| POT vs. Elcom Technology Communications | POT vs. Binh Duong Trade | POT vs. South Basic Chemicals | POT vs. Century Synthetic Fiber |
| Binh Duong vs. Vietnam Petroleum Transport | Binh Duong vs. Innovative Technology Development | Binh Duong vs. PostTelecommunication Equipment | Binh Duong vs. Global Electrical Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |