Correlation Between Tng Investment and BIDV Insurance
Can any of the company-specific risk be diversified away by investing in both Tng Investment 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 Tng Investment and BIDV Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tng Investment And and BIDV Insurance Corp, you can compare the effects of market volatilities on Tng Investment 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 Tng Investment with a short position of BIDV Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and BIDV Insurance.
Diversification Opportunities for Tng Investment and BIDV Insurance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tng and BIDV is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And 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 Tng Investment 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 Tng Investment And 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 Tng Investment i.e., Tng Investment and BIDV Insurance go up and down completely randomly.
Pair Corralation between Tng Investment and BIDV Insurance
Assuming the 90 days trading horizon Tng Investment And is expected to under-perform the BIDV Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Tng Investment And is 1.26 times less risky than BIDV Insurance. The stock trades about -0.03 of its potential returns per unit of risk. The BIDV Insurance Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,320,000 in BIDV Insurance Corp on September 13, 2024 and sell it today you would earn a total of 105,000 from holding BIDV Insurance Corp or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tng Investment And vs. BIDV Insurance Corp
Performance |
| Timeline |
| Tng Investment And |
| BIDV Insurance Corp |
Tng Investment and BIDV Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tng Investment and BIDV Insurance
The main advantage of trading using opposite Tng Investment and BIDV Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment 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.| Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. Alphanam ME |
| BIDV Insurance vs. FIT INVEST JSC | BIDV Insurance vs. Damsan JSC | BIDV Insurance vs. An Phat Plastic | BIDV Insurance vs. Alphanam ME |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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