Correlation Between BIDV Securities and Saigon Viendong
Can any of the company-specific risk be diversified away by investing in both BIDV Securities and Saigon Viendong 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 Saigon Viendong 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 Saigon Viendong Technology, you can compare the effects of market volatilities on BIDV Securities and Saigon Viendong 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 Saigon Viendong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Securities and Saigon Viendong.
Diversification Opportunities for BIDV Securities and Saigon Viendong
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIDV and Saigon is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Securities JSC and Saigon Viendong Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Viendong Tech 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 Saigon Viendong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Viendong Tech has no effect on the direction of BIDV Securities i.e., BIDV Securities and Saigon Viendong go up and down completely randomly.
Pair Corralation between BIDV Securities and Saigon Viendong
Assuming the 90 days trading horizon BIDV Securities JSC is expected to generate 44.32 times more return on investment than Saigon Viendong. However, BIDV Securities is 44.32 times more volatile than Saigon Viendong Technology. It trades about 0.08 of its potential returns per unit of risk. Saigon Viendong Technology is currently generating about 0.04 per unit of risk. If you would invest 21,090,900 in BIDV Securities JSC on September 14, 2024 and sell it today you would lose (16,335,900) from holding BIDV Securities JSC or give up 77.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.4% |
| Values | Daily Returns |
BIDV Securities JSC vs. Saigon Viendong Technology
Performance |
| Timeline |
| BIDV Securities JSC |
| Saigon Viendong Tech |
BIDV Securities and Saigon Viendong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIDV Securities and Saigon Viendong
The main advantage of trading using opposite BIDV Securities and Saigon Viendong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Securities position performs unexpectedly, Saigon Viendong 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 Saigon Viendong will offset losses from the drop in Saigon Viendong's long position.| BIDV Securities vs. Song Hong Garment | BIDV Securities vs. Alphanam ME | BIDV Securities vs. Hochiminh City Metal | BIDV Securities vs. Atesco Industrial Cartering |
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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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