Correlation Between HNX 30 and Bao Ngoc
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By analyzing existing cross correlation between HNX 30 and Bao Ngoc Investment, you can compare the effects of market volatilities on HNX 30 and Bao Ngoc 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 HNX 30 with a short position of Bao Ngoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Bao Ngoc.
Diversification Opportunities for HNX 30 and Bao Ngoc
Very weak diversification
The 3 months correlation between HNX and Bao is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Bao Ngoc Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bao Ngoc Investment and HNX 30 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 HNX 30 are associated (or correlated) with Bao Ngoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bao Ngoc Investment has no effect on the direction of HNX 30 i.e., HNX 30 and Bao Ngoc go up and down completely randomly.
Pair Corralation between HNX 30 and Bao Ngoc
Assuming the 90 days trading horizon HNX 30 is expected to generate 0.39 times more return on investment than Bao Ngoc. However, HNX 30 is 2.59 times less risky than Bao Ngoc. It trades about -0.15 of its potential returns per unit of risk. Bao Ngoc Investment is currently generating about -0.06 per unit of risk. If you would invest 51,811 in HNX 30 on September 2, 2024 and sell it today you would lose (3,832) from holding HNX 30 or give up 7.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNX 30 vs. Bao Ngoc Investment
Performance |
| Timeline |
HNX 30 and Bao Ngoc Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
Bao Ngoc Investment
Pair trading matchups for Bao Ngoc
Pair Trading with HNX 30 and Bao Ngoc
The main advantage of trading using opposite HNX 30 and Bao Ngoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Bao Ngoc 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 Bao Ngoc will offset losses from the drop in Bao Ngoc's long position.| HNX 30 vs. Hai An Transport | HNX 30 vs. Pha Lai Thermal | HNX 30 vs. PetroVietnam Transportation Corp | HNX 30 vs. Petrolimex Information Technology |
| Bao Ngoc vs. Innovative Technology Development | Bao Ngoc vs. Saigon Viendong Technology | Bao Ngoc vs. Petrovietnam Drilling Mud | Bao Ngoc vs. Construction And 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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