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 Trade, 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
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Post and Binh is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Post and Telecommunications 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 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 Trade 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 1.04 times more volatile than Binh Duong Trade. It trades about 0.0 of its total potential returns per unit of risk. Binh Duong Trade is currently generating about 0.01 per unit of volatility. If you would invest 1,095,000 in Binh Duong Trade on September 3, 2024 and sell it today you would lose (75,000) from holding Binh Duong Trade or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post and Telecommunications vs. Binh Duong Trade
Performance |
| Timeline |
| Post and Telecommuni |
| Binh Duong Trade |
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. Hanoi Plastics JSC | Post vs. Phuoc Hoa Rubber | Post vs. Transport and Industry | Post vs. Hochiminh City Metal |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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