Correlation Between 577 Investment and Binh Duong
Can any of the company-specific risk be diversified away by investing in both 577 Investment and Binh Duong 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 577 Investment and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 577 Investment Corp and Binh Duong Construction, you can compare the effects of market volatilities on 577 Investment and Binh Duong 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 577 Investment with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577 Investment and Binh Duong.
Diversification Opportunities for 577 Investment and Binh Duong
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between 577 and Binh is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding 577 Investment Corp and Binh Duong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Construction and 577 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 577 Investment Corp are associated (or correlated) with Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Construction has no effect on the direction of 577 Investment i.e., 577 Investment and Binh Duong go up and down completely randomly.
Pair Corralation between 577 Investment and Binh Duong
Assuming the 90 days trading horizon 577 Investment Corp is expected to under-perform the Binh Duong. In addition to that, 577 Investment is 1.37 times more volatile than Binh Duong Construction. It trades about -0.04 of its total potential returns per unit of risk. Binh Duong Construction is currently generating about 0.29 per unit of volatility. If you would invest 818,000 in Binh Duong Construction on December 27, 2024 and sell it today you would earn a total of 212,000 from holding Binh Duong Construction or generate 25.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
577 Investment Corp vs. Binh Duong Construction
Performance |
Timeline |
577 Investment Corp |
Binh Duong Construction |
577 Investment and Binh Duong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 577 Investment and Binh Duong
The main advantage of trading using opposite 577 Investment and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577 Investment position performs unexpectedly, Binh Duong 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 Duong will offset losses from the drop in Binh Duong's long position.577 Investment vs. Vien Dong Investment | 577 Investment vs. Tri Viet Management | 577 Investment vs. Riverway Management JSC | 577 Investment vs. Nam Kim Steel |
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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 Stocks Directory module to find actively traded stocks across global markets.
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