Correlation Between BIDV Insurance and CEO Group
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and CEO Group 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 BIDV Insurance and CEO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIDV Insurance Corp and CEO Group JSC, you can compare the effects of market volatilities on BIDV Insurance and CEO Group 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 BIDV Insurance with a short position of CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and CEO Group.
Diversification Opportunities for BIDV Insurance and CEO Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BIDV and CEO is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group JSC and BIDV Insurance 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 BIDV Insurance Corp are associated (or correlated) with CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and CEO Group go up and down completely randomly.
Pair Corralation between BIDV Insurance and CEO Group
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 0.54 times more return on investment than CEO Group. However, BIDV Insurance Corp is 1.84 times less risky than CEO Group. It trades about 0.0 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.35 per unit of risk. If you would invest 3,440,000 in BIDV Insurance Corp on October 22, 2024 and sell it today you would earn a total of 0.00 from holding BIDV Insurance Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
BIDV Insurance Corp vs. CEO Group JSC
Performance |
Timeline |
BIDV Insurance Corp |
CEO Group JSC |
BIDV Insurance and CEO Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIDV Insurance and CEO Group
The main advantage of trading using opposite BIDV Insurance and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.BIDV Insurance vs. Petrolimex Information Technology | BIDV Insurance vs. South Books Educational | BIDV Insurance vs. Truong Thanh Furniture | BIDV Insurance vs. Ha Noi Education |
CEO Group vs. Sao Ta Foods | CEO Group vs. Taseco Air Services | CEO Group vs. Investment and Industrial | CEO Group vs. Petrolimex Information Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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