Correlation Between Alphanam and BIDV Securities
Can any of the company-specific risk be diversified away by investing in both Alphanam and BIDV Securities 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 Alphanam and BIDV Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and BIDV Securities JSC, you can compare the effects of market volatilities on Alphanam and BIDV Securities 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 Alphanam with a short position of BIDV Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and BIDV Securities.
Diversification Opportunities for Alphanam and BIDV Securities
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alphanam and BIDV is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and BIDV Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIDV Securities JSC and Alphanam 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 Alphanam ME are associated (or correlated) with BIDV Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIDV Securities JSC has no effect on the direction of Alphanam i.e., Alphanam and BIDV Securities go up and down completely randomly.
Pair Corralation between Alphanam and BIDV Securities
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the BIDV Securities. In addition to that, Alphanam is 1.75 times more volatile than BIDV Securities JSC. It trades about -0.18 of its total potential returns per unit of risk. BIDV Securities JSC is currently generating about 0.16 per unit of volatility. If you would invest 4,445,000 in BIDV Securities JSC on September 15, 2024 and sell it today you would earn a total of 325,000 from holding BIDV Securities JSC or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Alphanam ME vs. BIDV Securities JSC
Performance |
| Timeline |
| Alphanam ME |
| BIDV Securities JSC |
Alphanam and BIDV Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and BIDV Securities
The main advantage of trading using opposite Alphanam and BIDV Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, BIDV Securities 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 BIDV Securities will offset losses from the drop in BIDV Securities' long position.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| BIDV Securities vs. Song Hong Garment | BIDV Securities vs. Alphanam ME | BIDV Securities vs. Hochiminh City Metal | BIDV Securities vs. Atesco Industrial Cartering |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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