Correlation Between Tng Investment and BaoMinh Insurance
Can any of the company-specific risk be diversified away by investing in both Tng Investment 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 Tng Investment and BaoMinh Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tng Investment And and BaoMinh Insurance Corp, you can compare the effects of market volatilities on Tng Investment 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 Tng Investment with a short position of BaoMinh Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tng Investment and BaoMinh Insurance.
Diversification Opportunities for Tng Investment and BaoMinh Insurance
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tng and BaoMinh is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tng Investment And 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 Tng Investment 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 Tng Investment And 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 Tng Investment i.e., Tng Investment and BaoMinh Insurance go up and down completely randomly.
Pair Corralation between Tng Investment and BaoMinh Insurance
Assuming the 90 days trading horizon Tng Investment And is expected to generate 0.73 times more return on investment than BaoMinh Insurance. However, Tng Investment And is 1.38 times less risky than BaoMinh Insurance. It trades about 0.22 of its potential returns per unit of risk. BaoMinh Insurance Corp is currently generating about 0.13 per unit of risk. If you would invest 2,490,000 in Tng Investment And on September 26, 2024 and sell it today you would earn a total of 140,000 from holding Tng Investment And or generate 5.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tng Investment And vs. BaoMinh Insurance Corp
Performance |
Timeline |
Tng Investment And |
BaoMinh Insurance Corp |
Tng Investment and BaoMinh Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tng Investment and BaoMinh Insurance
The main advantage of trading using opposite Tng Investment and BaoMinh Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tng Investment 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.Tng Investment vs. FIT INVEST JSC | Tng Investment vs. Damsan JSC | Tng Investment vs. An Phat Plastic | Tng Investment vs. Alphanam ME |
BaoMinh Insurance vs. FIT INVEST JSC | BaoMinh Insurance vs. Damsan JSC | BaoMinh Insurance vs. An Phat Plastic | BaoMinh Insurance vs. Alphanam ME |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |