Correlation Between BIDV Insurance and KSD
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and KSD 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 KSD 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 KSD, you can compare the effects of market volatilities on BIDV Insurance and KSD 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 KSD. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and KSD.
Diversification Opportunities for BIDV Insurance and KSD
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BIDV and KSD is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and KSD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSD 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 KSD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSD has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and KSD go up and down completely randomly.
Pair Corralation between BIDV Insurance and KSD
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 0.54 times more return on investment than KSD. However, BIDV Insurance Corp is 1.84 times less risky than KSD. It trades about 0.06 of its potential returns per unit of risk. KSD is currently generating about -0.01 per unit of risk. If you would invest 2,599,971 in BIDV Insurance Corp on September 12, 2024 and sell it today you would earn a total of 860,029 from holding BIDV Insurance Corp or generate 33.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.29% |
| Values | Daily Returns |
BIDV Insurance Corp vs. KSD
Performance |
| Timeline |
| BIDV Insurance Corp |
| KSD |
BIDV Insurance and KSD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Insurance and KSD
The main advantage of trading using opposite BIDV Insurance and KSD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, KSD 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 KSD will offset losses from the drop in KSD'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 |
| KSD vs. Pha Le Plastics | KSD vs. DOMESCO Medical Import | KSD vs. BIDV Insurance Corp | KSD vs. Dong A Hotel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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