Correlation Between BaoMinh Insurance and Vinhomes JSC
Can any of the company-specific risk be diversified away by investing in both BaoMinh Insurance and Vinhomes JSC 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 Vinhomes JSC 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 Vinhomes JSC, you can compare the effects of market volatilities on BaoMinh Insurance and Vinhomes JSC 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 Vinhomes JSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BaoMinh Insurance and Vinhomes JSC.
Diversification Opportunities for BaoMinh Insurance and Vinhomes JSC
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between BaoMinh and Vinhomes is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BaoMinh Insurance Corp and Vinhomes JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinhomes JSC 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 Vinhomes JSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinhomes JSC has no effect on the direction of BaoMinh Insurance i.e., BaoMinh Insurance and Vinhomes JSC go up and down completely randomly.
Pair Corralation between BaoMinh Insurance and Vinhomes JSC
Assuming the 90 days trading horizon BaoMinh Insurance Corp is expected to generate 1.05 times more return on investment than Vinhomes JSC. However, BaoMinh Insurance is 1.05 times more volatile than Vinhomes JSC. It trades about 0.03 of its potential returns per unit of risk. Vinhomes JSC is currently generating about 0.01 per unit of risk. If you would invest 1,890,771 in BaoMinh Insurance Corp on September 3, 2024 and sell it today you would earn a total of 194,229 from holding BaoMinh Insurance Corp or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BaoMinh Insurance Corp vs. Vinhomes JSC
Performance |
| Timeline |
| BaoMinh Insurance Corp |
| Vinhomes JSC |
BaoMinh Insurance and Vinhomes JSC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BaoMinh Insurance and Vinhomes JSC
The main advantage of trading using opposite BaoMinh Insurance and Vinhomes JSC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BaoMinh Insurance position performs unexpectedly, Vinhomes JSC 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 Vinhomes JSC will offset losses from the drop in Vinhomes JSC'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 |
| Vinhomes JSC vs. Innovative Technology Development | Vinhomes JSC vs. Tien Giang Investment | Vinhomes JSC vs. Hai An Transport | Vinhomes JSC vs. Ha Long Investment |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |