Correlation Between Mobile World and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both Mobile World 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 Mobile World and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile World Investment and BaoMinh Insurance Corp, you can compare the effects of market volatilities on Mobile World 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 Mobile World with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile World and BaoMinh Insurance.
Diversification Opportunities for Mobile World and BaoMinh Insurance
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mobile and BaoMinh is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mobile World Investment 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 Mobile World 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 Mobile World Investment 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 Mobile World i.e., Mobile World and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between Mobile World and BaoMinh Insurance
Assuming the 90 days trading horizon Mobile World Investment is expected to generate 0.83 times more return on investment than BaoMinh Insurance. However, Mobile World Investment is 1.2 times less risky than BaoMinh Insurance. It trades about -0.15 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about -0.16 per unit of risk. If you would invest 6,000,000 in Mobile World Investment on October 12, 2024 and sell it today you would lose (250,000) from holding Mobile World Investment or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile World Investment vs. BaoMinh Insurance Corp
Performance |
| Timeline |
| Mobile World Investment |
| BaoMinh Insurance Corp |
Mobile World and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile World and BaoMinh Insurance
The main advantage of trading using opposite Mobile World and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile World 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.| Mobile World vs. HVC Investment and | Mobile World vs. PetroVietnam Drilling Well | Mobile World vs. Vina2 Investment and | Mobile World vs. Thanh Dat Investment |
| BaoMinh Insurance vs. FIT INVEST JSC | BaoMinh Insurance vs. Damsan JSC | BaoMinh Insurance vs. An Phat Plastic | BaoMinh Insurance vs. APG Securities Joint |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |