Correlation Between Binh Duong and PVI Reinsurance
Can any of the company-specific risk be diversified away by investing in both Binh Duong and PVI Reinsurance 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 Binh Duong and PVI Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Duong Construction and PVI Reinsurance Corp, you can compare the effects of market volatilities on Binh Duong and PVI Reinsurance 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 Binh Duong with a short position of PVI Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and PVI Reinsurance.
Diversification Opportunities for Binh Duong and PVI Reinsurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binh and PVI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and PVI Reinsurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVI Reinsurance Corp and Binh Duong 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 Binh Duong Construction are associated (or correlated) with PVI Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVI Reinsurance Corp has no effect on the direction of Binh Duong i.e., Binh Duong and PVI Reinsurance go up and down completely randomly.
Pair Corralation between Binh Duong and PVI Reinsurance
Assuming the 90 days trading horizon Binh Duong Construction is expected to generate 1.01 times more return on investment than PVI Reinsurance. However, Binh Duong is 1.01 times more volatile than PVI Reinsurance Corp. It trades about 0.22 of its potential returns per unit of risk. PVI Reinsurance Corp is currently generating about -0.04 per unit of risk. If you would invest 576,000 in Binh Duong Construction on August 28, 2024 and sell it today you would earn a total of 106,000 from holding Binh Duong Construction or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.13% |
| Values | Daily Returns |
Binh Duong Construction vs. PVI Reinsurance Corp
Performance |
| Timeline |
| Binh Duong Construction |
| PVI Reinsurance Corp |
Binh Duong and PVI Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and PVI Reinsurance
The main advantage of trading using opposite Binh Duong and PVI Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, PVI Reinsurance 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 PVI Reinsurance will offset losses from the drop in PVI Reinsurance's long position.| Binh Duong vs. An Phat Plastic | Binh Duong vs. Plastic Additives JSC | Binh Duong vs. Hanoi Plastics JSC | Binh Duong vs. PVI Reinsurance Corp |
| PVI Reinsurance vs. FIT INVEST JSC | PVI Reinsurance vs. Damsan JSC | PVI Reinsurance vs. An Phat Plastic | PVI Reinsurance vs. APG Securities Joint |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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