Correlation Between Saigon Viendong and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong 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 Saigon Viendong and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Viendong Technology and BaoMinh Insurance Corp, you can compare the effects of market volatilities on Saigon Viendong 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 Saigon Viendong with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and BaoMinh Insurance.
Diversification Opportunities for Saigon Viendong and BaoMinh Insurance
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saigon and BaoMinh is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology 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 Saigon Viendong 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 Saigon Viendong Technology 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 Saigon Viendong i.e., Saigon Viendong and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between Saigon Viendong and BaoMinh Insurance
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 1.98 times more return on investment than BaoMinh Insurance. However, Saigon Viendong is 1.98 times more volatile than BaoMinh Insurance Corp. It trades about -0.01 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 1,155,000 in Saigon Viendong Technology on October 12, 2024 and sell it today you would lose (15,000) from holding Saigon Viendong Technology or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Saigon Viendong Technology vs. BaoMinh Insurance Corp
Performance |
| Timeline |
| Saigon Viendong Tech |
| BaoMinh Insurance Corp |
Saigon Viendong and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and BaoMinh Insurance
The main advantage of trading using opposite Saigon Viendong and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong 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.| Saigon Viendong vs. FIT INVEST JSC | Saigon Viendong vs. Damsan JSC | Saigon Viendong vs. An Phat Plastic | Saigon Viendong vs. APG Securities Joint |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |