Correlation Between BaoMinh Insurance and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both BaoMinh Insurance and Asia Commercial 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 BaoMinh Insurance and Asia Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BaoMinh Insurance Corp and Asia Commercial Bank, you can compare the effects of market volatilities on BaoMinh Insurance and Asia Commercial 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 BaoMinh Insurance with a short position of Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BaoMinh Insurance and Asia Commercial.
Diversification Opportunities for BaoMinh Insurance and Asia Commercial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between BaoMinh and Asia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BaoMinh Insurance Corp and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank and BaoMinh 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 BaoMinh Insurance Corp are associated (or correlated) with Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of BaoMinh Insurance i.e., BaoMinh Insurance and Asia Commercial go up and down completely randomly.
Pair Corralation between BaoMinh Insurance and Asia Commercial
Assuming the 90 days trading horizon BaoMinh Insurance Corp is expected to under-perform the Asia Commercial. In addition to that, BaoMinh Insurance is 1.36 times more volatile than Asia Commercial Bank. It trades about -0.04 of its total potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.03 per unit of volatility. If you would invest 2,435,000 in Asia Commercial Bank on September 3, 2024 and sell it today you would earn a total of 85,000 from holding Asia Commercial Bank or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BaoMinh Insurance Corp vs. Asia Commercial Bank
Performance |
| Timeline |
| BaoMinh Insurance Corp |
| Asia Commercial Bank |
BaoMinh Insurance and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BaoMinh Insurance and Asia Commercial
The main advantage of trading using opposite BaoMinh Insurance and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BaoMinh Insurance position performs unexpectedly, Asia Commercial 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 Asia Commercial will offset losses from the drop in Asia Commercial's long position.| BaoMinh Insurance vs. FIT INVEST JSC | BaoMinh Insurance vs. Damsan JSC | BaoMinh Insurance vs. An Phat Plastic | BaoMinh Insurance vs. Alphanam ME |
| Asia Commercial vs. Military Insurance Corp | Asia Commercial vs. Fecon Mining JSC | Asia Commercial vs. Agriculture Printing and | Asia Commercial vs. BaoMinh Insurance Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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