Correlation Between Ben Thanh and PVI Reinsurance
Can any of the company-specific risk be diversified away by investing in both Ben Thanh and PVI Reinsurance 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 Ben Thanh and PVI Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ben Thanh Rubber and PVI Reinsurance Corp, you can compare the effects of market volatilities on Ben Thanh and PVI Reinsurance 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 Ben Thanh with a short position of PVI Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ben Thanh and PVI Reinsurance.
Diversification Opportunities for Ben Thanh and PVI Reinsurance
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ben and PVI is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ben Thanh Rubber and PVI Reinsurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVI Reinsurance Corp and Ben Thanh 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 Ben Thanh Rubber are associated (or correlated) with PVI Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVI Reinsurance Corp has no effect on the direction of Ben Thanh i.e., Ben Thanh and PVI Reinsurance go up and down completely randomly.
Pair Corralation between Ben Thanh and PVI Reinsurance
Assuming the 90 days trading horizon Ben Thanh Rubber is expected to generate 0.74 times more return on investment than PVI Reinsurance. However, Ben Thanh Rubber is 1.36 times less risky than PVI Reinsurance. It trades about 0.07 of its potential returns per unit of risk. PVI Reinsurance Corp is currently generating about 0.01 per unit of risk. If you would invest 776,921 in Ben Thanh Rubber on October 27, 2024 and sell it today you would earn a total of 653,079 from holding Ben Thanh Rubber or generate 84.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.42% |
| Values | Daily Returns |
Ben Thanh Rubber vs. PVI Reinsurance Corp
Performance |
| Timeline |
| Ben Thanh Rubber |
| PVI Reinsurance Corp |
Ben Thanh and PVI Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ben Thanh and PVI Reinsurance
The main advantage of trading using opposite Ben Thanh and PVI Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ben Thanh position performs unexpectedly, PVI Reinsurance 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 PVI Reinsurance will offset losses from the drop in PVI Reinsurance's long position.| Ben Thanh vs. Foreign Trade Development | Ben Thanh vs. Post and Telecommunications | Ben Thanh vs. PVI Reinsurance Corp | Ben Thanh vs. FPT Digital Retail |
| PVI Reinsurance vs. Vietnam Airlines JSC | PVI Reinsurance vs. Industrial Urban Development | PVI Reinsurance vs. Petrolimex Petrochemical JSC | PVI Reinsurance vs. Hai An Transport |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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