Correlation Between BIDV Insurance and Cuulong Fish
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and Cuulong Fish 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 BIDV Insurance and Cuulong Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIDV Insurance Corp and Cuulong Fish JSC, you can compare the effects of market volatilities on BIDV Insurance and Cuulong Fish 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 BIDV Insurance with a short position of Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and Cuulong Fish.
Diversification Opportunities for BIDV Insurance and Cuulong Fish
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIDV and Cuulong is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish JSC and BIDV Insurance 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 BIDV Insurance Corp are associated (or correlated) with Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and Cuulong Fish go up and down completely randomly.
Pair Corralation between BIDV Insurance and Cuulong Fish
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 1.09 times more return on investment than Cuulong Fish. However, BIDV Insurance is 1.09 times more volatile than Cuulong Fish JSC. It trades about 0.06 of its potential returns per unit of risk. Cuulong Fish JSC is currently generating about 0.01 per unit of risk. If you would invest 2,318,156 in BIDV Insurance Corp on November 30, 2024 and sell it today you would earn a total of 1,331,844 from holding BIDV Insurance Corp or generate 57.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.59% |
Values | Daily Returns |
BIDV Insurance Corp vs. Cuulong Fish JSC
Performance |
Timeline |
BIDV Insurance Corp |
Cuulong Fish JSC |
BIDV Insurance and Cuulong Fish Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIDV Insurance and Cuulong Fish
The main advantage of trading using opposite BIDV Insurance and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.BIDV Insurance vs. PetroVietnam Transportation Corp | ||
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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