Correlation Between Bentre Aquaproduct and CEO Group
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct and CEO Group 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 Bentre Aquaproduct and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentre Aquaproduct Import and CEO Group JSC, you can compare the effects of market volatilities on Bentre Aquaproduct and CEO Group 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 Bentre Aquaproduct with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and CEO Group.
Diversification Opportunities for Bentre Aquaproduct and CEO Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bentre and CEO is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and Bentre Aquaproduct 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 Bentre Aquaproduct Import are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of Bentre Aquaproduct i.e., Bentre Aquaproduct and CEO Group go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and CEO Group
Assuming the 90 days trading horizon Bentre Aquaproduct Import is expected to generate 0.81 times more return on investment than CEO Group. However, Bentre Aquaproduct Import is 1.24 times less risky than CEO Group. It trades about 0.04 of its potential returns per unit of risk. CEO Group JSC is currently generating about 0.03 per unit of risk. If you would invest 3,049,912 in Bentre Aquaproduct Import on September 14, 2024 and sell it today you would earn a total of 860,088 from holding Bentre Aquaproduct Import or generate 28.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 70.26% |
Values | Daily Returns |
Bentre Aquaproduct Import vs. CEO Group JSC
Performance |
Timeline |
Bentre Aquaproduct Import |
CEO Group JSC |
Bentre Aquaproduct and CEO Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bentre Aquaproduct and CEO Group
The main advantage of trading using opposite Bentre Aquaproduct and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct vs. Alphanam ME |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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