Correlation Between BIDV Insurance and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and Vietnam Technological 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 Vietnam Technological 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 Vietnam Technological And, you can compare the effects of market volatilities on BIDV Insurance and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and Vietnam Technological.
Diversification Opportunities for BIDV Insurance and Vietnam Technological
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BIDV and Vietnam is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and Vietnam Technological go up and down completely randomly.
Pair Corralation between BIDV Insurance and Vietnam Technological
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to under-perform the Vietnam Technological. But the stock apears to be less risky and, when comparing its historical volatility, BIDV Insurance Corp is 1.29 times less risky than Vietnam Technological. The stock trades about -0.04 of its potential returns per unit of risk. The Vietnam Technological And is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,400,000 in Vietnam Technological And on October 25, 2024 and sell it today you would earn a total of 20,000 from holding Vietnam Technological And or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIDV Insurance Corp vs. Vietnam Technological And
Performance |
| Timeline |
| BIDV Insurance Corp |
| Vietnam Technological And |
BIDV Insurance and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Insurance and Vietnam Technological
The main advantage of trading using opposite BIDV Insurance and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological's long position.| BIDV Insurance vs. FIT INVEST JSC | BIDV Insurance vs. Damsan JSC | BIDV Insurance vs. An Phat Plastic | BIDV Insurance vs. APG Securities Joint |
| Vietnam Technological vs. Binh Thuan Books | Vietnam Technological vs. Military Insurance Corp | Vietnam Technological vs. BaoMinh Insurance Corp | Vietnam Technological vs. Saigon Viendong Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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