Correlation Between BIDV Insurance and Taseco Air
Can any of the company-specific risk be diversified away by investing in both BIDV Insurance and Taseco Air 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 Taseco Air 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 Taseco Air Services, you can compare the effects of market volatilities on BIDV Insurance and Taseco Air 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 Taseco Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIDV Insurance and Taseco Air.
Diversification Opportunities for BIDV Insurance and Taseco Air
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIDV and Taseco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BIDV Insurance Corp and Taseco Air Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseco Air Services 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 Taseco Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseco Air Services has no effect on the direction of BIDV Insurance i.e., BIDV Insurance and Taseco Air go up and down completely randomly.
Pair Corralation between BIDV Insurance and Taseco Air
Assuming the 90 days trading horizon BIDV Insurance Corp is expected to generate 1.39 times more return on investment than Taseco Air. However, BIDV Insurance is 1.39 times more volatile than Taseco Air Services. It trades about 0.15 of its potential returns per unit of risk. Taseco Air Services is currently generating about -0.02 per unit of risk. If you would invest 3,080,000 in BIDV Insurance Corp on September 15, 2024 and sell it today you would earn a total of 410,000 from holding BIDV Insurance Corp or generate 13.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BIDV Insurance Corp vs. Taseco Air Services
Performance |
Timeline |
BIDV Insurance Corp |
Taseco Air Services |
BIDV Insurance and Taseco Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIDV Insurance and Taseco Air
The main advantage of trading using opposite BIDV Insurance and Taseco Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIDV Insurance position performs unexpectedly, Taseco Air 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 Taseco Air will offset losses from the drop in Taseco Air's long position.BIDV Insurance vs. Vincom Retail JSC | BIDV Insurance vs. 577 Investment Corp | BIDV Insurance vs. Vietnam National Reinsurance | BIDV Insurance vs. Thanh Dat Investment |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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