Correlation Between Alphanam and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Alphanam 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 Alphanam and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Military Insurance Corp, you can compare the effects of market volatilities on Alphanam 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 Alphanam with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Military Insurance.
Diversification Opportunities for Alphanam and Military Insurance
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alphanam and Military is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME 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 Alphanam 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 Alphanam ME 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 Alphanam i.e., Alphanam and Military Insurance go up and down completely randomly.
Pair Corralation between Alphanam and Military Insurance
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Military Insurance. In addition to that, Alphanam is 1.82 times more volatile than Military Insurance Corp. It trades about -0.06 of its total potential returns per unit of risk. Military Insurance Corp is currently generating about 0.0 per unit of volatility. If you would invest 1,725,000 in Military Insurance Corp on November 3, 2024 and sell it today you would lose (35,000) from holding Military Insurance Corp or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.41% |
| Values | Daily Returns |
Alphanam ME vs. Military Insurance Corp
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Military Insurance Corp |
Alphanam and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Military Insurance
The main advantage of trading using opposite Alphanam and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam 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.| Alphanam vs. Vu Dang Investment | Alphanam vs. Pha Le Plastics | Alphanam vs. Taseco Air Services | Alphanam vs. Binh Minh Plastics |
| Military Insurance vs. Vincom Retail JSC | Military Insurance vs. FPT Digital Retail | Military Insurance vs. PostTelecommunication Equipment | Military Insurance vs. Post and Telecommunications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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