Correlation Between Saigon Viendong and BIDV Insurance
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong 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 Saigon Viendong and BIDV Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Viendong Technology and BIDV Insurance Corp, you can compare the effects of market volatilities on Saigon Viendong 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 Saigon Viendong with a short position of BIDV Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and BIDV Insurance.
Diversification Opportunities for Saigon Viendong and BIDV Insurance
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saigon and BIDV is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology 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 Saigon Viendong 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 Saigon Viendong Technology 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 Saigon Viendong i.e., Saigon Viendong and BIDV Insurance go up and down completely randomly.
Pair Corralation between Saigon Viendong and BIDV Insurance
Assuming the 90 days trading horizon Saigon Viendong is expected to generate 2.81 times less return on investment than BIDV Insurance. In addition to that, Saigon Viendong is 1.07 times more volatile than BIDV Insurance Corp. It trades about 0.02 of its total potential returns per unit of risk. BIDV Insurance Corp is currently generating about 0.06 per unit of volatility. If you would invest 3,250,000 in BIDV Insurance Corp on September 12, 2024 and sell it today you would earn a total of 175,000 from holding BIDV Insurance Corp or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Saigon Viendong Technology vs. BIDV Insurance Corp
Performance |
| Timeline |
| Saigon Viendong Tech |
| BIDV Insurance Corp |
Saigon Viendong and BIDV Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and BIDV Insurance
The main advantage of trading using opposite Saigon Viendong and BIDV Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong 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.| Saigon Viendong vs. Mobile World Investment | Saigon Viendong vs. PVI Reinsurance Corp | Saigon Viendong vs. Elcom Technology Communications | Saigon Viendong vs. FPT Digital Retail |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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