Correlation Between BaoMinh Insurance and Tng Investment

Can any of the company-specific risk be diversified away by investing in both BaoMinh Insurance and Tng Investment 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 BaoMinh Insurance and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BaoMinh Insurance Corp and Tng Investment And, you can compare the effects of market volatilities on BaoMinh Insurance and Tng Investment 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 BaoMinh Insurance with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BaoMinh Insurance and Tng Investment.

Diversification Opportunities for BaoMinh Insurance and Tng Investment

0.22

Correlation Coefficient

BaoMinh Insurance  Tng Investment

Modest diversification

The 3 months correlation between BaoMinh and Tng is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BaoMinh Insurance Corp and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And and BaoMinh Insurance 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 BaoMinh Insurance Corp are associated (or correlated) with Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of BaoMinh Insurance i.e., BaoMinh Insurance and Tng Investment go up and down completely randomly.

Pair Corralation between BaoMinh Insurance and Tng Investment

Assuming the 90 days trading horizon BaoMinh Insurance Corp is expected to under-perform the Tng Investment. But the stock apears to be less risky and, when comparing its historical volatility, BaoMinh Insurance Corp is 1.12 times less risky than Tng Investment. The stock trades about 0.0 of its potential returns per unit of risk. The Tng Investment And is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,002,427  in Tng Investment And on October 9, 2024 and sell it today you would earn a total of  537,573  from holding Tng Investment And or generate 26.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.46%
Values	Daily Returns

BaoMinh Insurance Corp  vs.  Tng Investment And

BaoMinh Insurance Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BaoMinh Insurance Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Tng Investment And

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tng Investment And are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Tng Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BaoMinh Insurance and Tng Investment

The main advantage of trading using opposite BaoMinh Insurance and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BaoMinh Insurance position performs unexpectedly, Tng Investment 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 Tng Investment will offset losses from the drop in Tng Investment's long position.

The idea behind BaoMinh Insurance Corp and Tng Investment And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.