Correlation Between Vu Dang and BIDV Insurance
Can any of the company-specific risk be diversified away by investing in both Vu Dang 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 Vu Dang and BIDV Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vu Dang Investment and BIDV Insurance Corp, you can compare the effects of market volatilities on Vu Dang 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 Vu Dang with a short position of BIDV Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and BIDV Insurance.
Diversification Opportunities for Vu Dang and BIDV Insurance
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVD and BIDV is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang Investment 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 Vu Dang 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 Vu Dang Investment 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 Vu Dang i.e., Vu Dang and BIDV Insurance go up and down completely randomly.
Pair Corralation between Vu Dang and BIDV Insurance
Assuming the 90 days trading horizon Vu Dang Investment is expected to under-perform the BIDV Insurance. In addition to that, Vu Dang is 2.45 times more volatile than BIDV Insurance Corp. It trades about 0.0 of its total potential returns per unit of risk. BIDV Insurance Corp is currently generating about 0.01 per unit of volatility. If you would invest 3,350,000 in BIDV Insurance Corp on November 7, 2024 and sell it today you would earn a total of 5,000 from holding BIDV Insurance Corp or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vu Dang Investment vs. BIDV Insurance Corp
Performance |
| Timeline |
| Vu Dang Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| BIDV Insurance Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Vu Dang and BIDV Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and BIDV Insurance
The main advantage of trading using opposite Vu Dang and BIDV Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang 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.| Vu Dang vs. Elcom Technology Communications | Vu Dang vs. Vietnam JSCmmercial Bank | Vu Dang vs. Hai An Transport | Vu Dang vs. Transport and Industry |
| BIDV Insurance vs. HVC Investment and | BIDV Insurance vs. Vietnam Technological And | BIDV Insurance vs. Elcom Technology Communications | BIDV Insurance vs. Transport and Industry |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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