Correlation Between AgriBank Securities and Binh Duong
Can any of the company-specific risk be diversified away by investing in both AgriBank Securities 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 AgriBank Securities and Binh Duong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriBank Securities JSC and Binh Duong Trade, you can compare the effects of market volatilities on AgriBank Securities 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 AgriBank Securities with a short position of Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriBank Securities and Binh Duong.
Diversification Opportunities for AgriBank Securities and Binh Duong
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AgriBank and Binh is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AgriBank Securities JSC and Binh Duong Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Trade and AgriBank 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 AgriBank Securities JSC 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 Trade has no effect on the direction of AgriBank Securities i.e., AgriBank Securities and Binh Duong go up and down completely randomly.
Pair Corralation between AgriBank Securities and Binh Duong
Assuming the 90 days trading horizon AgriBank Securities JSC is expected to under-perform the Binh Duong. In addition to that, AgriBank Securities is 1.12 times more volatile than Binh Duong Trade. It trades about -0.02 of its total potential returns per unit of risk. Binh Duong Trade is currently generating about 0.06 per unit of volatility. If you would invest 1,065,000 in Binh Duong Trade on September 15, 2024 and sell it today you would earn a total of 55,000 from holding Binh Duong Trade or generate 5.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AgriBank Securities JSC vs. Binh Duong Trade
Performance |
Timeline |
AgriBank Securities JSC |
Binh Duong Trade |
AgriBank Securities and Binh Duong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AgriBank Securities and Binh Duong
The main advantage of trading using opposite AgriBank Securities and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriBank Securities 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.AgriBank Securities vs. FIT INVEST JSC | AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities vs. Alphanam ME |
Binh Duong vs. Vietnam Petroleum Transport | Binh Duong vs. Innovative Technology Development | Binh Duong vs. PostTelecommunication Equipment | Binh Duong vs. Global Electrical Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |