Correlation Between Vinhomes JSC and Bentre Aquaproduct

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

By analyzing existing cross correlation between Vinhomes JSC and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Vinhomes JSC and Bentre Aquaproduct 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 Vinhomes JSC with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinhomes JSC and Bentre Aquaproduct.

Diversification Opportunities for Vinhomes JSC and Bentre Aquaproduct

0.26

Correlation Coefficient

Vinhomes JSC  Bentre Aquaproduct

Modest diversification

The 3 months correlation between Vinhomes and Bentre is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vinhomes JSC and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and Vinhomes JSC 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 Vinhomes JSC are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Vinhomes JSC i.e., Vinhomes JSC and Bentre Aquaproduct go up and down completely randomly.

Pair Corralation between Vinhomes JSC and Bentre Aquaproduct

Assuming the 90 days trading horizon Vinhomes JSC is expected to generate 9.83 times less return on investment than Bentre Aquaproduct. But when comparing it to its historical volatility, Vinhomes JSC is 1.14 times less risky than Bentre Aquaproduct. It trades about 0.01 of its potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,263,056  in Bentre Aquaproduct Import on September 20, 2024 and sell it today you would earn a total of  646,944  from holding Bentre Aquaproduct Import or generate 19.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.52%
Values	Daily Returns

Vinhomes JSC  vs.  Bentre Aquaproduct Import

Vinhomes JSC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bentre Aquaproduct Import

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Vinhomes JSC and Bentre Aquaproduct

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

The idea behind Vinhomes JSC and Bentre Aquaproduct Import 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 Commodity Directory module to find actively traded commodities issued by global exchanges.