Correlation Between Alphanam and BIDV Insurance
Can any of the company-specific risk be diversified away by investing in both Alphanam 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 Alphanam and BIDV Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and BIDV Insurance Corp, you can compare the effects of market volatilities on Alphanam 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 Alphanam with a short position of BIDV Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and BIDV Insurance.
Diversification Opportunities for Alphanam and BIDV Insurance
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alphanam and BIDV is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME 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 Alphanam 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 Alphanam ME 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 Alphanam i.e., Alphanam and BIDV Insurance go up and down completely randomly.
Pair Corralation between Alphanam and BIDV Insurance
Assuming the 90 days trading horizon Alphanam ME is expected to generate 2.22 times more return on investment than BIDV Insurance. However, Alphanam is 2.22 times more volatile than BIDV Insurance Corp. It trades about 0.12 of its potential returns per unit of risk. BIDV Insurance Corp is currently generating about 0.06 per unit of risk. If you would invest 480,000 in Alphanam ME on December 24, 2024 and sell it today you would earn a total of 40,000 from holding Alphanam ME or generate 8.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 47.46% |
Values | Daily Returns |
Alphanam ME vs. BIDV Insurance Corp
Performance |
Timeline |
Alphanam ME |
BIDV Insurance Corp |
Alphanam and BIDV Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alphanam and BIDV Insurance
The main advantage of trading using opposite Alphanam and BIDV Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam 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.Alphanam vs. Investment and Industrial | Alphanam vs. VietinBank Securities JSC | Alphanam vs. Vietnam JSCmmercial Bank | Alphanam vs. FPT Digital Retail |
BIDV Insurance vs. Saigon Telecommunication Technologies | BIDV Insurance vs. Viet Nam Construction | BIDV Insurance vs. Binhthuan Agriculture Services | BIDV Insurance vs. PostTelecommunication Equipment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Global Correlations Find global opportunities by holding instruments from different markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |