Correlation Between BIDV Insurance and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on BIDV Insurance and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and POST TELECOMMU.
Diversification Opportunities for BIDV Insurance and POST TELECOMMU
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIDV and POST is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and POST TELECOMMU go up and down completely randomly.
Pair Corralation between BIDV Insurance and POST TELECOMMU
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 0.53 times more return on investment than POST TELECOMMU. However, BIDV Insurance Corp is 1.88 times less risky than POST TELECOMMU. It trades about 0.18 of its potential returns per unit of risk. POST TELECOMMU is currently generating about 0.03 per unit of risk. If you would invest 3,060,000 in BIDV Insurance Corp on September 13, 2024 and sell it today you would earn a total of 365,000 from holding BIDV Insurance Corp or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.07% |
| Values | Daily Returns |
BIDV Insurance Corp vs. POST TELECOMMU
Performance |
| Timeline |
| BIDV Insurance Corp |
| POST TELECOMMU |
BIDV Insurance and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Insurance and POST TELECOMMU
The main advantage of trading using opposite BIDV Insurance and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| BIDV Insurance vs. FIT INVEST JSC | BIDV Insurance vs. Damsan JSC | BIDV Insurance vs. An Phat Plastic | BIDV Insurance vs. Alphanam ME |
| POST TELECOMMU vs. VietinBank Securities JSC | POST TELECOMMU vs. Tienlen Steel Corp | POST TELECOMMU vs. Ducgiang Chemicals Detergent | POST TELECOMMU vs. Vnsteel Vicasa JSC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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