Correlation Between BIDV Insurance and Investment
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and Investment 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 Investment 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 Investment and Industrial, you can compare the effects of market volatilities on BIDV Insurance and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and Investment.
Diversification Opportunities for BIDV Insurance and Investment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIDV and Investment is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and Investment and Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Industrial 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment and Industrial has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and Investment go up and down completely randomly.
Pair Corralation between BIDV Insurance and Investment
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 1.15 times more return on investment than Investment. However, BIDV Insurance is 1.15 times more volatile than Investment and Industrial. It trades about 0.05 of its potential returns per unit of risk. Investment and Industrial is currently generating about -0.01 per unit of risk. If you would invest 2,290,884 in BIDV Insurance Corp on September 12, 2024 and sell it today you would earn a total of 1,169,116 from holding BIDV Insurance Corp or generate 51.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIDV Insurance Corp vs. Investment and Industrial
Performance |
| Timeline |
| BIDV Insurance Corp |
| Investment and Industrial |
BIDV Insurance and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Insurance and Investment
The main advantage of trading using opposite BIDV Insurance and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| BIDV Insurance vs. POST TELECOMMU | BIDV Insurance vs. FPT Digital Retail | BIDV Insurance vs. Vnsteel Vicasa JSC | BIDV Insurance vs. South Basic Chemicals |
| Investment vs. BIDV Insurance Corp | Investment vs. Vnsteel Vicasa JSC | Investment vs. Vina2 Investment and | Investment vs. HUD1 Investment and |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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