Correlation Between Binh Thuan and Investment

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

By analyzing existing cross correlation between Binh Thuan Books and Investment And Construction, you can compare the effects of market volatilities on Binh Thuan and Investment 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 Thuan with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Thuan and Investment.

Diversification Opportunities for Binh Thuan and Investment

-0.48

Correlation Coefficient

Binh Thuan  Investment

Very good diversification

The 3 months correlation between Binh and Investment is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Binh Thuan Books and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const and Binh Thuan 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 Thuan Books are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Binh Thuan i.e., Binh Thuan and Investment go up and down completely randomly.

Pair Corralation between Binh Thuan and Investment

Assuming the 90 days trading horizon Binh Thuan Books is expected to generate 1.4 times more return on investment than Investment. However, Binh Thuan is 1.4 times more volatile than Investment And Construction. It trades about 0.02 of its potential returns per unit of risk. Investment And Construction is currently generating about -0.01 per unit of risk. If you would invest  1,352,685  in Binh Thuan Books on December 22, 2024 and sell it today you would lose (12,685) from holding Binh Thuan Books or give up 0.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	77.97%
Values	Daily Returns

Binh Thuan Books  vs.  Investment And Construction

Binh Thuan Books

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Binh Thuan Books are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Binh Thuan is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Investment And Const

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Binh Thuan and Investment

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

The idea behind Binh Thuan Books and Investment And Construction 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..