Correlation Between La Hien and BIDV Insurance
Can any of the company-specific risk be diversified away by investing in both La Hien and BIDV Insurance 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 La Hien and BIDV Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between La Hien Cement and BIDV Insurance Corp, you can compare the effects of market volatilities on La Hien and BIDV Insurance 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 La Hien with a short position of BIDV Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of La Hien and BIDV Insurance.
Diversification Opportunities for La Hien and BIDV Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CLH and BIDV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding La Hien Cement and BIDV Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIDV Insurance Corp and La Hien 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 La Hien Cement are associated (or correlated) with BIDV Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIDV Insurance Corp has no effect on the direction of La Hien i.e., La Hien and BIDV Insurance go up and down completely randomly.
Pair Corralation between La Hien and BIDV Insurance
If you would invest 0.00 in La Hien Cement on October 9, 2024 and sell it today you would earn a total of 0.00 from holding La Hien Cement or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
La Hien Cement vs. BIDV Insurance Corp
Performance |
| Timeline |
| La Hien Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| BIDV Insurance Corp |
La Hien and BIDV Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with La Hien and BIDV Insurance
The main advantage of trading using opposite La Hien and BIDV Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if La Hien position performs unexpectedly, BIDV Insurance 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 BIDV Insurance will offset losses from the drop in BIDV Insurance's long position.| La Hien vs. Vietnam Petroleum Transport | La Hien vs. Transimex Transportation JSC | La Hien vs. Nafoods Group JSC | La Hien vs. Vincom Retail JSC |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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