Correlation Between BIDV Securities and Song Hong
Can any of the company-specific risk be diversified away by investing in both BIDV Securities and Song Hong 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 Song Hong 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 Song Hong Garment, you can compare the effects of market volatilities on BIDV Securities and Song Hong 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 Song Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Securities and Song Hong.
Diversification Opportunities for BIDV Securities and Song Hong
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BIDV and Song is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Securities JSC and Song Hong Garment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Hong Garment 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 Song Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Hong Garment has no effect on the direction of BIDV Securities i.e., BIDV Securities and Song Hong go up and down completely randomly.
Pair Corralation between BIDV Securities and Song Hong
Assuming the 90 days trading horizon BIDV Securities JSC is expected to generate 1.29 times more return on investment than Song Hong. However, BIDV Securities is 1.29 times more volatile than Song Hong Garment. It trades about 0.01 of its potential returns per unit of risk. Song Hong Garment is currently generating about 0.0 per unit of risk. If you would invest 4,770,000 in BIDV Securities JSC on September 13, 2024 and sell it today you would lose (20,000) from holding BIDV Securities JSC or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BIDV Securities JSC vs. Song Hong Garment
Performance |
| Timeline |
| BIDV Securities JSC |
| Song Hong Garment |
BIDV Securities and Song Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Securities and Song Hong
The main advantage of trading using opposite BIDV Securities and Song Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Securities position performs unexpectedly, Song Hong 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 Song Hong will offset losses from the drop in Song Hong's long position.| BIDV Securities vs. Saigon Viendong Technology | BIDV Securities vs. TDG Global Investment | BIDV Securities vs. Vietnam Airlines JSC | BIDV Securities vs. Long An Food |
| Song Hong vs. Tng Investment And | Song Hong vs. Vina2 Investment and | Song Hong vs. Dinhvu Port Investment | Song Hong vs. Thanh Dat Investment |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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