Correlation Between Binh Duong and APG Securities
Can any of the company-specific risk be diversified away by investing in both Binh Duong and APG Securities 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 APG Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Duong Construction and APG Securities Joint, you can compare the effects of market volatilities on Binh Duong and APG Securities 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 APG Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and APG Securities.
Diversification Opportunities for Binh Duong and APG Securities
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binh and APG is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and APG Securities Joint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APG Securities Joint 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 Construction are associated (or correlated) with APG Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APG Securities Joint has no effect on the direction of Binh Duong i.e., Binh Duong and APG Securities go up and down completely randomly.
Pair Corralation between Binh Duong and APG Securities
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 1.36 times more return on investment than APG Securities. However, Binh Duong is 1.36 times more volatile than APG Securities Joint. It trades about 0.15 of its potential returns per unit of risk. APG Securities Joint is currently generating about -0.47 per unit of risk. If you would invest 680,000 in Binh Duong Construction on September 25, 2024 and sell it today you would earn a total of 48,000 from holding Binh Duong Construction or generate 7.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Binh Duong Construction vs. APG Securities Joint
Performance |
Timeline |
Binh Duong Construction |
APG Securities Joint |
Binh Duong and APG Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Binh Duong and APG Securities
The main advantage of trading using opposite Binh Duong and APG Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, APG Securities 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 APG Securities will offset losses from the drop in APG Securities' long position.Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong vs. Alphanam ME |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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