Correlation Between Bentre Aquaproduct and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Bentre Aquaproduct 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 Bentre Aquaproduct and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentre Aquaproduct Import and Military Insurance Corp, you can compare the effects of market volatilities on Bentre Aquaproduct 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 Bentre Aquaproduct with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentre Aquaproduct and Military Insurance.
Diversification Opportunities for Bentre Aquaproduct and Military Insurance
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentre and Military is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bentre Aquaproduct Import 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 Bentre Aquaproduct 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 Bentre Aquaproduct Import 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 Bentre Aquaproduct i.e., Bentre Aquaproduct and Military Insurance go up and down completely randomly.
Pair Corralation between Bentre Aquaproduct and Military Insurance
Assuming the 90 days trading horizon Bentre Aquaproduct is expected to generate 3.48 times less return on investment than Military Insurance. But when comparing it to its historical volatility, Bentre Aquaproduct Import is 1.62 times less risky than Military Insurance. It trades about 0.06 of its potential returns per unit of risk. Military Insurance Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,660,000 in Military Insurance Corp on August 28, 2024 and sell it today you would earn a total of 50,000 from holding Military Insurance Corp or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bentre Aquaproduct Import vs. Military Insurance Corp
Performance |
| Timeline |
| Bentre Aquaproduct Import |
| Military Insurance Corp |
Bentre Aquaproduct and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentre Aquaproduct and Military Insurance
The main advantage of trading using opposite Bentre Aquaproduct and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentre Aquaproduct 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.| Bentre Aquaproduct vs. FIT INVEST JSC | Bentre Aquaproduct vs. Damsan JSC | Bentre Aquaproduct vs. An Phat Plastic | Bentre Aquaproduct vs. APG Securities Joint |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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