Correlation Between Binh Duong and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Asia Commercial 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 Binh Duong and Asia Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Duong Trade and Asia Commercial Bank, you can compare the effects of market volatilities on Binh Duong and Asia Commercial 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 Binh Duong with a short position of Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Asia Commercial.
Diversification Opportunities for Binh Duong and Asia Commercial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binh and Asia is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Trade and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank and Binh Duong 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 Binh Duong Trade are associated (or correlated) with Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of Binh Duong i.e., Binh Duong and Asia Commercial go up and down completely randomly.
Pair Corralation between Binh Duong and Asia Commercial
Assuming the 90 days trading horizon Binh Duong Trade is expected to generate 1.31 times more return on investment than Asia Commercial. However, Binh Duong is 1.31 times more volatile than Asia Commercial Bank. It trades about 0.15 of its potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.07 per unit of risk. If you would invest 997,000 in Binh Duong Trade on September 5, 2024 and sell it today you would earn a total of 28,000 from holding Binh Duong Trade or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Binh Duong Trade vs. Asia Commercial Bank
Performance |
| Timeline |
| Binh Duong Trade |
| Asia Commercial Bank |
Binh Duong and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Asia Commercial
The main advantage of trading using opposite Binh Duong and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Asia Commercial 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 Asia Commercial will offset losses from the drop in Asia Commercial's long position.| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. Alphanam ME |
| Asia Commercial vs. Sao Ta Foods | Asia Commercial vs. Binh Duong Trade | Asia Commercial vs. Investment and Industrial | Asia Commercial vs. Saigon Beer Alcohol |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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