Correlation Between Investment and Binh Thuan

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

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

Diversification Opportunities for Investment and Binh Thuan

0.47

Correlation Coefficient

Investment  Binh Thuan

Very weak diversification

The 3 months correlation between Investment and Binh is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Investment And Construction and Binh Thuan Books in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Thuan Books and 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 Investment And Construction are associated (or correlated) with Binh Thuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Thuan Books has no effect on the direction of Investment i.e., Investment and Binh Thuan go up and down completely randomly.

Pair Corralation between Investment and Binh Thuan

Assuming the 90 days trading horizon Investment And Construction is expected to generate 0.67 times more return on investment than Binh Thuan. However, Investment And Construction is 1.5 times less risky than Binh Thuan. It trades about -0.07 of its potential returns per unit of risk. Binh Thuan Books is currently generating about -0.05 per unit of risk. If you would invest  1,100,000  in Investment And Construction on October 25, 2024 and sell it today you would lose (170,000) from holding Investment And Construction or give up 15.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	84.13%
Values	Daily Returns

Investment And Construction  vs.  Binh Thuan Books

Investment And Const

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Binh Thuan Books

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Binh Thuan Books 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 February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Investment and Binh Thuan

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

The idea behind Investment And Construction and Binh Thuan Books 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.