Correlation Between BIDV Insurance and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU, you can compare the effects of market volatilities on BIDV Insurance and POST TELECOMMU 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 POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and POST TELECOMMU.
Diversification Opportunities for BIDV Insurance and POST TELECOMMU
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIDV and POST is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU 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 POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and POST TELECOMMU go up and down completely randomly.
Pair Corralation between BIDV Insurance and POST TELECOMMU
Assuming the 90 days trading horizon BIDV Insurance is expected to generate 2.02 times less return on investment than POST TELECOMMU. But when comparing it to its historical volatility, BIDV Insurance Corp is 1.96 times less risky than POST TELECOMMU. It trades about 0.06 of its potential returns per unit of risk. POST TELECOMMU is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,119,998 in POST TELECOMMU on December 3, 2024 and sell it today you would earn a total of 160,002 from holding POST TELECOMMU or generate 7.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.31% |
Values | Daily Returns |
BIDV Insurance Corp vs. POST TELECOMMU
Performance |
Timeline |
BIDV Insurance Corp |
POST TELECOMMU |
BIDV Insurance and POST TELECOMMU Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIDV Insurance and POST TELECOMMU
The main advantage of trading using opposite BIDV Insurance and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.BIDV Insurance vs. Binh Minh Plastics | BIDV Insurance vs. Transport and Industry | BIDV Insurance vs. Viet Thanh Plastic | BIDV Insurance vs. Southern Rubber Industry |
POST TELECOMMU vs. Pacific Petroleum Transportation | POST TELECOMMU vs. Transimex Transportation JSC | POST TELECOMMU vs. BaoMinh Insurance Corp | POST TELECOMMU vs. Taseco Air Services |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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