Correlation Between BaoMinh Insurance and HVC Investment
Can any of the company-specific risk be diversified away by investing in both BaoMinh Insurance and HVC Investment 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 HVC Investment 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 HVC Investment and, you can compare the effects of market volatilities on BaoMinh Insurance and HVC Investment 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 HVC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BaoMinh Insurance and HVC Investment.
Diversification Opportunities for BaoMinh Insurance and HVC Investment
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BaoMinh and HVC is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BaoMinh Insurance Corp and HVC Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HVC Investment 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 HVC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HVC Investment has no effect on the direction of BaoMinh Insurance i.e., BaoMinh Insurance and HVC Investment go up and down completely randomly.
Pair Corralation between BaoMinh Insurance and HVC Investment
Assuming the 90 days trading horizon BaoMinh Insurance Corp is expected to under-perform the HVC Investment. But the stock apears to be less risky and, when comparing its historical volatility, BaoMinh Insurance Corp is 2.16 times less risky than HVC Investment. The stock trades about -0.05 of its potential returns per unit of risk. The HVC Investment and is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 846,000 in HVC Investment and on October 30, 2024 and sell it today you would earn a total of 80,000 from holding HVC Investment and or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BaoMinh Insurance Corp vs. HVC Investment and
Performance |
| Timeline |
| BaoMinh Insurance Corp |
| HVC Investment |
BaoMinh Insurance and HVC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BaoMinh Insurance and HVC Investment
The main advantage of trading using opposite BaoMinh Insurance and HVC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BaoMinh Insurance position performs unexpectedly, HVC Investment 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 HVC Investment will offset losses from the drop in HVC Investment's long position.| BaoMinh Insurance vs. Dong A Hotel | BaoMinh Insurance vs. Transimex Transportation JSC | BaoMinh Insurance vs. Visicons Construction and | BaoMinh Insurance vs. Vietnam Construction JSC |
| HVC Investment vs. FIT INVEST JSC | HVC Investment vs. Damsan JSC | HVC Investment vs. An Phat Plastic | HVC Investment vs. APG Securities Joint |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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