Correlation Between Bao Ngoc and Camau Trading

Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Camau Trading 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 Bao Ngoc and Camau Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bao Ngoc Investment and Camau Trading JSC, you can compare the effects of market volatilities on Bao Ngoc and Camau Trading 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 Bao Ngoc with a short position of Camau Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Camau Trading.

Diversification Opportunities for Bao Ngoc and Camau Trading

-0.11

Correlation Coefficient

Bao Ngoc  Camau Trading

Good diversification

The 3 months correlation between Bao and Camau is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Camau Trading JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camau Trading JSC and Bao Ngoc 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 Bao Ngoc Investment are associated (or correlated) with Camau Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camau Trading JSC has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Camau Trading go up and down completely randomly.

Pair Corralation between Bao Ngoc and Camau Trading

Assuming the 90 days trading horizon Bao Ngoc Investment is expected to generate 0.6 times more return on investment than Camau Trading. However, Bao Ngoc Investment is 1.68 times less risky than Camau Trading. It trades about -0.08 of its potential returns per unit of risk. Camau Trading JSC is currently generating about -0.09 per unit of risk. If you would invest  940,000  in Bao Ngoc Investment on December 19, 2024 and sell it today you would lose (100,000) from holding Bao Ngoc Investment or give up 10.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.17%
Values	Daily Returns

Bao Ngoc Investment  vs.  Camau Trading JSC

Bao Ngoc Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bao Ngoc Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Camau Trading JSC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Camau Trading JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Bao Ngoc and Camau Trading

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

The idea behind Bao Ngoc Investment and Camau Trading JSC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.