Correlation Between Bao Ngoc and Taseco Air
Can any of the company-specific risk be diversified away by investing in both Bao Ngoc and Taseco Air 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 Bao Ngoc and Taseco Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bao Ngoc Investment and Taseco Air Services, you can compare the effects of market volatilities on Bao Ngoc and Taseco Air 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 Bao Ngoc with a short position of Taseco Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bao Ngoc and Taseco Air.
Diversification Opportunities for Bao Ngoc and Taseco Air
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bao and Taseco is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bao Ngoc Investment and Taseco Air Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taseco Air Services and Bao Ngoc 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 Bao Ngoc Investment are associated (or correlated) with Taseco Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taseco Air Services has no effect on the direction of Bao Ngoc i.e., Bao Ngoc and Taseco Air go up and down completely randomly.
Pair Corralation between Bao Ngoc and Taseco Air
Assuming the 90 days trading horizon Bao Ngoc Investment is expected to generate 2.82 times more return on investment than Taseco Air. However, Bao Ngoc is 2.82 times more volatile than Taseco Air Services. It trades about 0.04 of its potential returns per unit of risk. Taseco Air Services is currently generating about 0.05 per unit of risk. If you would invest 944,000 in Bao Ngoc Investment on September 2, 2024 and sell it today you would earn a total of 16,000 from holding Bao Ngoc Investment or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bao Ngoc Investment vs. Taseco Air Services
Performance |
| Timeline |
| Bao Ngoc Investment |
| Taseco Air Services |
Bao Ngoc and Taseco Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bao Ngoc and Taseco Air
The main advantage of trading using opposite Bao Ngoc and Taseco Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bao Ngoc position performs unexpectedly, Taseco Air 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 Taseco Air will offset losses from the drop in Taseco Air's long position.| Bao Ngoc vs. Innovative Technology Development | Bao Ngoc vs. Saigon Viendong Technology | Bao Ngoc vs. Petrovietnam Drilling Mud | Bao Ngoc vs. Construction And Investment |
| Taseco Air vs. FIT INVEST JSC | Taseco Air vs. Damsan JSC | Taseco Air vs. An Phat Plastic | Taseco Air 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |