Correlation Between Binh Duong and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on Binh Duong and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Thanh Dat.
Diversification Opportunities for Binh Duong and Thanh Dat
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binh and Thanh is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Trade and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat Investment 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of Binh Duong i.e., Binh Duong and Thanh Dat go up and down completely randomly.
Pair Corralation between Binh Duong and Thanh Dat
Assuming the 90 days trading horizon Binh Duong is expected to generate 19.41 times less return on investment than Thanh Dat. But when comparing it to its historical volatility, Binh Duong Trade is 1.29 times less risky than Thanh Dat. It trades about 0.0 of its potential returns per unit of risk. Thanh Dat Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 998,110 in Thanh Dat Investment on August 29, 2024 and sell it today you would earn a total of 1,561,890 from holding Thanh Dat Investment or generate 156.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Trade vs. Thanh Dat Investment
Performance |
| Timeline |
| Binh Duong Trade |
| Thanh Dat Investment |
Binh Duong and Thanh Dat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Thanh Dat
The main advantage of trading using opposite Binh Duong and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. APG Securities Joint |
| Thanh Dat vs. Ducgiang Chemicals Detergent | Thanh Dat vs. Dinhvu Port Investment | Thanh Dat vs. Construction And Investment | Thanh Dat vs. Danang Education Investment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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