Correlation Between BIDV Securities and Dow Jones
Can any of the company-specific risk be diversified away by investing in both BIDV Securities and Dow Jones 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 Securities and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIDV Securities JSC and Dow Jones Industrial, you can compare the effects of market volatilities on BIDV Securities and Dow Jones 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 Securities with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Securities and Dow Jones.
Diversification Opportunities for BIDV Securities and Dow Jones
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIDV and Dow is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Securities JSC and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and BIDV Securities 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 Securities JSC are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BIDV Securities i.e., BIDV Securities and Dow Jones go up and down completely randomly.
Pair Corralation between BIDV Securities and Dow Jones
Assuming the 90 days trading horizon BIDV Securities JSC is expected to generate 128.94 times more return on investment than Dow Jones. However, BIDV Securities is 128.94 times more volatile than Dow Jones Industrial. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.13 per unit of risk. If you would invest 20,907,100 in BIDV Securities JSC on September 3, 2024 and sell it today you would lose (16,407,100) from holding BIDV Securities JSC or give up 78.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BIDV Securities JSC vs. Dow Jones Industrial
Performance |
| Timeline |
BIDV Securities and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BIDV Securities JSC
Pair trading matchups for BIDV Securities
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BIDV Securities and Dow Jones
The main advantage of trading using opposite BIDV Securities and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Securities position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BIDV Securities vs. Dinhvu Port Investment | BIDV Securities vs. Vincom Retail JSC | BIDV Securities vs. Japan Vietnam Medical | BIDV Securities vs. HUD1 Investment and |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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