Correlation Between AgriBank Securities and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both AgriBank Securities and BaoMinh 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 AgriBank Securities and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriBank Securities JSC and BaoMinh Insurance Corp, you can compare the effects of market volatilities on AgriBank Securities and BaoMinh 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 AgriBank Securities with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriBank Securities and BaoMinh Insurance.
Diversification Opportunities for AgriBank Securities and BaoMinh Insurance
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AgriBank and BaoMinh is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding AgriBank Securities JSC and BaoMinh Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BaoMinh Insurance Corp and AgriBank Securities 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 AgriBank Securities JSC are associated (or correlated) with BaoMinh Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BaoMinh Insurance Corp has no effect on the direction of AgriBank Securities i.e., AgriBank Securities and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between AgriBank Securities and BaoMinh Insurance
Assuming the 90 days trading horizon AgriBank Securities JSC is expected to generate 1.45 times more return on investment than BaoMinh Insurance. However, AgriBank Securities is 1.45 times more volatile than BaoMinh Insurance Corp. It trades about 0.08 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about 0.04 per unit of risk. If you would invest 748,273 in AgriBank Securities JSC on September 2, 2024 and sell it today you would earn a total of 961,727 from holding AgriBank Securities JSC or generate 128.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriBank Securities JSC vs. BaoMinh Insurance Corp
Performance |
| Timeline |
| AgriBank Securities JSC |
| BaoMinh Insurance Corp |
AgriBank Securities and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriBank Securities and BaoMinh Insurance
The main advantage of trading using opposite AgriBank Securities and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriBank Securities position performs unexpectedly, BaoMinh 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 BaoMinh Insurance will offset losses from the drop in BaoMinh Insurance's long position.| AgriBank Securities vs. Damsan JSC | AgriBank Securities vs. An Phat Plastic | AgriBank Securities vs. Alphanam ME | AgriBank Securities vs. Binhthuan Agriculture Services |
| BaoMinh Insurance vs. FIT INVEST JSC | BaoMinh Insurance vs. Damsan JSC | BaoMinh Insurance vs. An Phat Plastic | BaoMinh 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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