Correlation Between Vinhomes JSC and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Vinhomes JSC 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 Vinhomes JSC and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinhomes JSC and Binh Duong Construction, you can compare the effects of market volatilities on Vinhomes JSC 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 Vinhomes JSC with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinhomes JSC and Binh Duong.
Diversification Opportunities for Vinhomes JSC and Binh Duong
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vinhomes and Binh is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC 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 Vinhomes JSC 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 Vinhomes JSC 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 Vinhomes JSC i.e., Vinhomes JSC and Binh Duong go up and down completely randomly.
Pair Corralation between Vinhomes JSC and Binh Duong
Assuming the 90 days trading horizon Vinhomes JSC is expected to under-perform the Binh Duong. But the stock apears to be less risky and, when comparing its historical volatility, Vinhomes JSC is 2.63 times less risky than Binh Duong. The stock trades about -0.09 of its potential returns per unit of risk. The Binh Duong Construction is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 693,000 in Binh Duong Construction on October 30, 2024 and sell it today you would earn a total of 257,000 from holding Binh Duong Construction or generate 37.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinhomes JSC vs. Binh Duong Construction
Performance |
| Timeline |
| Vinhomes JSC |
| Binh Duong Construction |
Vinhomes JSC and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinhomes JSC and Binh Duong
The main advantage of trading using opposite Vinhomes JSC and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinhomes JSC 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.| Vinhomes JSC vs. Petrolimex Insurance Corp | Vinhomes JSC vs. Vietnam National Reinsurance | Vinhomes JSC vs. Sao Ta Foods | Vinhomes JSC vs. Tng Investment And |
| Binh Duong vs. Nafoods Group JSC | Binh Duong vs. Hochiminh City Metal | Binh Duong vs. PostTelecommunication Equipment | Binh Duong vs. VietinBank Securities JSC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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