Correlation Between LDG Investment and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both LDG Investment and Ben Thanh 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 LDG Investment and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDG Investment JSC and Ben Thanh Rubber, you can compare the effects of market volatilities on LDG Investment and Ben Thanh 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 LDG Investment with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Ben Thanh.
Diversification Opportunities for LDG Investment and Ben Thanh
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LDG and Ben is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and LDG Investment 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 LDG Investment JSC are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of LDG Investment i.e., LDG Investment and Ben Thanh go up and down completely randomly.
Pair Corralation between LDG Investment and Ben Thanh
Assuming the 90 days trading horizon LDG Investment JSC is expected to generate 5.24 times more return on investment than Ben Thanh. However, LDG Investment is 5.24 times more volatile than Ben Thanh Rubber. It trades about 0.05 of its potential returns per unit of risk. Ben Thanh Rubber is currently generating about -0.19 per unit of risk. If you would invest 185,000 in LDG Investment JSC on September 24, 2024 and sell it today you would earn a total of 3,000 from holding LDG Investment JSC or generate 1.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
LDG Investment JSC vs. Ben Thanh Rubber
Performance |
Timeline |
LDG Investment JSC |
Ben Thanh Rubber |
LDG Investment and Ben Thanh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LDG Investment and Ben Thanh
The main advantage of trading using opposite LDG Investment and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. Alphanam ME |
Ben Thanh vs. LDG Investment JSC | Ben Thanh vs. Transport and Industry | Ben Thanh vs. SMC Investment Trading | Ben Thanh vs. Vina2 Investment and |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |