Correlation Between An Phat and Military Insurance
Can any of the company-specific risk be diversified away by investing in both An Phat and Military 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 An Phat and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and Military Insurance Corp, you can compare the effects of market volatilities on An Phat and Military 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 An Phat with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Military Insurance.
Diversification Opportunities for An Phat and Military Insurance
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AAA and Military is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Military Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Military Insurance Corp and An Phat 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 An Phat Plastic are associated (or correlated) with Military Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Military Insurance Corp has no effect on the direction of An Phat i.e., An Phat and Military Insurance go up and down completely randomly.
Pair Corralation between An Phat and Military Insurance
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Military Insurance. In addition to that, An Phat is 1.73 times more volatile than Military Insurance Corp. It trades about -0.19 of its total potential returns per unit of risk. Military Insurance Corp is currently generating about 0.07 per unit of volatility. If you would invest 1,650,000 in Military Insurance Corp on August 25, 2024 and sell it today you would earn a total of 25,000 from holding Military Insurance Corp or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. Military Insurance Corp
Performance |
| Timeline |
| An Phat Plastic |
| Military Insurance Corp |
An Phat and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Military Insurance
The main advantage of trading using opposite An Phat and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Military 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 Military Insurance will offset losses from the drop in Military Insurance's long position.| An Phat vs. South Basic Chemicals | An Phat vs. Saigon Beer Alcohol | An Phat vs. Vietnam Petroleum Transport | An Phat vs. Fecon Mining JSC |
| Military Insurance vs. FIT INVEST JSC | Military Insurance vs. Damsan JSC | Military Insurance vs. An Phat Plastic | Military 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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