Correlation Between Post and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Post 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 Post and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post and Telecommunications and Binh Duong Construction, you can compare the effects of market volatilities on Post 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 Post with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post and Binh Duong.
Diversification Opportunities for Post and Binh Duong
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Post and Binh is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications 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 Post 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 Post and Telecommunications 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 Post i.e., Post and Binh Duong go up and down completely randomly.
Pair Corralation between Post and Binh Duong
Assuming the 90 days trading horizon Post and Telecommunications is expected to under-perform the Binh Duong. In addition to that, Post is 1.31 times more volatile than Binh Duong Construction. It trades about 0.0 of its total potential returns per unit of risk. Binh Duong Construction is currently generating about 0.38 per unit of volatility. If you would invest 653,000 in Binh Duong Construction on September 18, 2024 and sell it today you would earn a total of 80,000 from holding Binh Duong Construction or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Post and Telecommunications vs. Binh Duong Construction
Performance |
| Timeline |
| Post and Telecommuni |
| Binh Duong Construction |
Post and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post and Binh Duong
The main advantage of trading using opposite Post and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post 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.| Post vs. HVC Investment and | Post vs. Tng Investment And | Post vs. Japan Vietnam Medical | Post vs. Telecoms Informatics JSC |
| Binh Duong vs. Elcom Technology Communications | Binh Duong vs. Post and Telecommunications | Binh Duong vs. Ducgiang Chemicals Detergent | Binh Duong vs. Hai An Transport |
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 Stocks Directory module to find actively traded stocks across global markets.
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