Correlation Between Taseco Air and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both Taseco Air 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 Taseco Air and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taseco Air Services and BaoMinh Insurance Corp, you can compare the effects of market volatilities on Taseco Air 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 Taseco Air with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseco Air and BaoMinh Insurance.
Diversification Opportunities for Taseco Air and BaoMinh Insurance
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Taseco and BaoMinh is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Taseco Air Services 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 Taseco Air 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 Taseco Air Services 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 Taseco Air i.e., Taseco Air and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between Taseco Air and BaoMinh Insurance
Assuming the 90 days trading horizon Taseco Air is expected to generate 2.8 times less return on investment than BaoMinh Insurance. But when comparing it to its historical volatility, Taseco Air Services is 1.2 times less risky than BaoMinh Insurance. It trades about 0.01 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,906,752 in BaoMinh Insurance Corp on October 4, 2024 and sell it today you would earn a total of 203,248 from holding BaoMinh Insurance Corp or generate 10.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.19% |
Values | Daily Returns |
Taseco Air Services vs. BaoMinh Insurance Corp
Performance |
Timeline |
Taseco Air Services |
BaoMinh Insurance Corp |
Taseco Air and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Taseco Air and BaoMinh Insurance
The main advantage of trading using opposite Taseco Air and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseco Air 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.Taseco Air vs. Ducgiang Chemicals Detergent | Taseco Air vs. Cotec Construction JSC | Taseco Air vs. Saigon Viendong Technology | Taseco Air vs. PetroVietnam Drilling Well |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |