Correlation Between BIDV Insurance and Idico JSC
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and Idico JSC 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 Idico JSC 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 Idico JSC, you can compare the effects of market volatilities on BIDV Insurance and Idico JSC 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 Idico JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and Idico JSC.
Diversification Opportunities for BIDV Insurance and Idico JSC
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIDV and Idico is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and Idico JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idico 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 Idico JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idico JSC has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and Idico JSC go up and down completely randomly.
Pair Corralation between BIDV Insurance and Idico JSC
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 1.13 times more return on investment than Idico JSC. However, BIDV Insurance is 1.13 times more volatile than Idico JSC. It trades about 0.03 of its potential returns per unit of risk. Idico JSC is currently generating about -0.02 per unit of risk. If you would invest 3,290,000 in BIDV Insurance Corp on August 31, 2024 and sell it today you would earn a total of 20,000 from holding BIDV Insurance Corp or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BIDV Insurance Corp vs. Idico JSC
Performance |
| Timeline |
| BIDV Insurance Corp |
| Idico JSC |
BIDV Insurance and Idico JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Insurance and Idico JSC
The main advantage of trading using opposite BIDV Insurance and Idico JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, Idico JSC 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 Idico JSC will offset losses from the drop in Idico JSC's long position.| BIDV Insurance vs. MST Investment JSC | BIDV Insurance vs. HUD1 Investment and | BIDV Insurance vs. Vincom Retail JSC | BIDV Insurance vs. Everland Investment JSC |
| Idico JSC vs. BIDV Insurance Corp | Idico JSC vs. Bao Ngoc Investment | Idico JSC vs. Saigon Telecommunication Technologies | Idico JSC vs. Pacific Petroleum Transportation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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