Correlation Between Mekong Fisheries and Bentre Aquaproduct

Can any of the company-specific risk be diversified away by investing in both Mekong Fisheries and Bentre Aquaproduct 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 Mekong Fisheries and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mekong Fisheries JSC and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Mekong Fisheries and Bentre Aquaproduct 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 Mekong Fisheries with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekong Fisheries and Bentre Aquaproduct.

Diversification Opportunities for Mekong Fisheries and Bentre Aquaproduct

-0.38

Correlation Coefficient

Mekong Fisheries  Bentre Aquaproduct

Very good diversification

The 3 months correlation between Mekong and Bentre is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mekong Fisheries JSC and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and Mekong Fisheries 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 Mekong Fisheries JSC are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Mekong Fisheries i.e., Mekong Fisheries and Bentre Aquaproduct go up and down completely randomly.

Pair Corralation between Mekong Fisheries and Bentre Aquaproduct

Assuming the 90 days trading horizon Mekong Fisheries JSC is expected to under-perform the Bentre Aquaproduct. But the stock apears to be less risky and, when comparing its historical volatility, Mekong Fisheries JSC is 1.15 times less risky than Bentre Aquaproduct. The stock trades about -0.03 of its potential returns per unit of risk. The Bentre Aquaproduct Import is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  3,704,149  in Bentre Aquaproduct Import on December 30, 2024 and sell it today you would earn a total of  825,851  from holding Bentre Aquaproduct Import or generate 22.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.61%
Values	Daily Returns

Mekong Fisheries JSC  vs.  Bentre Aquaproduct Import

Mekong Fisheries JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mekong Fisheries JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Mekong Fisheries is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Bentre Aquaproduct Import

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bentre Aquaproduct Import are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Bentre Aquaproduct displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mekong Fisheries and Bentre Aquaproduct

The main advantage of trading using opposite Mekong Fisheries and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekong Fisheries position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.

The idea behind Mekong Fisheries JSC and Bentre Aquaproduct Import pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.