Correlation Between BaoMinh Insurance and Hanoi Beer
Can any of the company-specific risk be diversified away by investing in both BaoMinh Insurance and Hanoi Beer 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 Hanoi Beer 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 Hanoi Beer Alcohol, you can compare the effects of market volatilities on BaoMinh Insurance and Hanoi Beer 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 Hanoi Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of BaoMinh Insurance and Hanoi Beer.
Diversification Opportunities for BaoMinh Insurance and Hanoi Beer
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between BaoMinh and Hanoi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BaoMinh Insurance Corp and Hanoi Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Beer Alcohol 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 Hanoi Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Beer Alcohol has no effect on the direction of BaoMinh Insurance i.e., BaoMinh Insurance and Hanoi Beer go up and down completely randomly.
Pair Corralation between BaoMinh Insurance and Hanoi Beer
Assuming the 90 days trading horizon BaoMinh Insurance Corp is expected to generate 1.31 times more return on investment than Hanoi Beer. However, BaoMinh Insurance is 1.31 times more volatile than Hanoi Beer Alcohol. It trades about 0.04 of its potential returns per unit of risk. Hanoi Beer Alcohol is currently generating about -0.01 per unit of risk. If you would invest 1,588,960 in BaoMinh Insurance Corp on September 14, 2024 and sell it today you would earn a total of 496,040 from holding BaoMinh Insurance Corp or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.28% |
| Values | Daily Returns |
BaoMinh Insurance Corp vs. Hanoi Beer Alcohol
Performance |
| Timeline |
| BaoMinh Insurance Corp |
| Hanoi Beer Alcohol |
BaoMinh Insurance and Hanoi Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BaoMinh Insurance and Hanoi Beer
The main advantage of trading using opposite BaoMinh Insurance and Hanoi Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BaoMinh Insurance position performs unexpectedly, Hanoi Beer 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 Hanoi Beer will offset losses from the drop in Hanoi Beer'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 |
| Hanoi Beer vs. Pha Lai Thermal | Hanoi Beer vs. Southern Rubber Industry | Hanoi Beer vs. Vietnam Airlines JSC | Hanoi Beer 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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