Correlation Between International Gas and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both International Gas and BaoMinh Insurance 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 International Gas and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Gas Product and BaoMinh Insurance Corp, you can compare the effects of market volatilities on International Gas and BaoMinh Insurance 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 International Gas with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Gas and BaoMinh Insurance.
Diversification Opportunities for International Gas and BaoMinh Insurance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and BaoMinh is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding International Gas Product and BaoMinh Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BaoMinh Insurance Corp and International Gas 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 International Gas Product are associated (or correlated) with BaoMinh Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BaoMinh Insurance Corp has no effect on the direction of International Gas i.e., International Gas and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between International Gas and BaoMinh Insurance
Assuming the 90 days trading horizon International Gas Product is expected to generate 0.89 times more return on investment than BaoMinh Insurance. However, International Gas Product is 1.12 times less risky than BaoMinh Insurance. It trades about -0.02 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about -0.05 per unit of risk. If you would invest 1,380,000 in International Gas Product on September 3, 2024 and sell it today you would lose (90,000) from holding International Gas Product or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Gas Product vs. BaoMinh Insurance Corp
Performance |
| Timeline |
| International Gas Product |
| BaoMinh Insurance Corp |
International Gas and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Gas and BaoMinh Insurance
The main advantage of trading using opposite International Gas and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Gas position performs unexpectedly, BaoMinh Insurance 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 BaoMinh Insurance will offset losses from the drop in BaoMinh Insurance's long position.| International Gas vs. Industrial Urban Development | International Gas vs. Investment and Industrial | International Gas vs. Picomat Plastic JSC | International Gas vs. Hai An Transport |
| BaoMinh Insurance vs. FIT INVEST JSC | BaoMinh Insurance vs. Damsan JSC | BaoMinh Insurance vs. An Phat Plastic | BaoMinh Insurance 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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