Correlation Between Hai An and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both Hai An 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 Hai An and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and BaoMinh Insurance Corp, you can compare the effects of market volatilities on Hai An 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 Hai An with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and BaoMinh Insurance.
Diversification Opportunities for Hai An and BaoMinh Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hai and BaoMinh is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport 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 Hai An 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 Hai An Transport 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 Hai An i.e., Hai An and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between Hai An and BaoMinh Insurance
Assuming the 90 days trading horizon Hai An Transport is expected to generate 1.37 times more return on investment than BaoMinh Insurance. However, Hai An is 1.37 times more volatile than BaoMinh Insurance Corp. It trades about 0.08 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about 0.01 per unit of risk. If you would invest 2,197,101 in Hai An Transport on October 30, 2024 and sell it today you would earn a total of 2,772,899 from holding Hai An Transport or generate 126.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hai An Transport vs. BaoMinh Insurance Corp
Performance |
| Timeline |
| Hai An Transport |
| BaoMinh Insurance Corp |
Hai An and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and BaoMinh Insurance
The main advantage of trading using opposite Hai An and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An 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.| Hai An vs. PVI Reinsurance Corp | Hai An vs. HUD1 Investment and | Hai An vs. Vien Dong Investment | Hai An vs. Military Insurance Corp |
| BaoMinh Insurance vs. Dong A Hotel | BaoMinh Insurance vs. Transimex Transportation JSC | BaoMinh Insurance vs. Visicons Construction and | BaoMinh Insurance vs. Vietnam Construction JSC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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