Correlation Between Techno Agricultural and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural and Ben Thanh 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 Techno Agricultural and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techno Agricultural Supplying and Ben Thanh Rubber, you can compare the effects of market volatilities on Techno Agricultural and Ben Thanh 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 Techno Agricultural with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and Ben Thanh.
Diversification Opportunities for Techno Agricultural and Ben Thanh
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Techno and Ben is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and Techno Agricultural 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 Techno Agricultural Supplying are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of Techno Agricultural i.e., Techno Agricultural and Ben Thanh go up and down completely randomly.
Pair Corralation between Techno Agricultural and Ben Thanh
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to generate 0.86 times more return on investment than Ben Thanh. However, Techno Agricultural Supplying is 1.17 times less risky than Ben Thanh. It trades about 0.08 of its potential returns per unit of risk. Ben Thanh Rubber is currently generating about -0.07 per unit of risk. If you would invest 239,000 in Techno Agricultural Supplying on November 7, 2024 and sell it today you would earn a total of 3,000 from holding Techno Agricultural Supplying or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. Ben Thanh Rubber
Performance |
| Timeline |
| Techno Agricultural |
| Ben Thanh Rubber |
Techno Agricultural and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and Ben Thanh
The main advantage of trading using opposite Techno Agricultural and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| Techno Agricultural vs. FIT INVEST JSC | Techno Agricultural vs. Damsan JSC | Techno Agricultural vs. An Phat Plastic | Techno Agricultural vs. APG Securities Joint |
| Ben Thanh vs. FIT INVEST JSC | Ben Thanh vs. Damsan JSC | Ben Thanh vs. An Phat Plastic | Ben Thanh vs. APG Securities Joint |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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