Correlation Between SSI Securities and Binh Thuan

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

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

Diversification Opportunities for SSI Securities and Binh Thuan

0.23

Correlation Coefficient

SSI Securities  Binh Thuan

Modest diversification

The 3 months correlation between SSI and Binh is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SSI Securities Corp 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 SSI Securities 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 SSI Securities Corp 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 SSI Securities i.e., SSI Securities and Binh Thuan go up and down completely randomly.

Pair Corralation between SSI Securities and Binh Thuan

Assuming the 90 days trading horizon SSI Securities is expected to generate 1.8 times less return on investment than Binh Thuan. But when comparing it to its historical volatility, SSI Securities Corp is 1.94 times less risky than Binh Thuan. It trades about 0.21 of its potential returns per unit of risk. Binh Thuan Books is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,340,000  in Binh Thuan Books on October 5, 2024 and sell it today you would earn a total of  140,000  from holding Binh Thuan Books or generate 10.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	76.19%
Values	Daily Returns

SSI Securities Corp  vs.  Binh Thuan Books

SSI Securities Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SSI Securities and Binh Thuan

The main advantage of trading using opposite SSI Securities and Binh Thuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSI Securities 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 SSI Securities Corp 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.