Correlation Between Ben Thanh and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Ben Thanh 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 Ben Thanh and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ben Thanh Rubber and Military Insurance Corp, you can compare the effects of market volatilities on Ben Thanh 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 Ben Thanh with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ben Thanh and Military Insurance.
Diversification Opportunities for Ben Thanh and Military Insurance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ben and Military is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ben Thanh Rubber 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 Ben Thanh 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 Ben Thanh Rubber 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 Ben Thanh i.e., Ben Thanh and Military Insurance go up and down completely randomly.
Pair Corralation between Ben Thanh and Military Insurance
Assuming the 90 days trading horizon Ben Thanh Rubber is expected to generate 0.7 times more return on investment than Military Insurance. However, Ben Thanh Rubber is 1.42 times less risky than Military Insurance. It trades about 0.05 of its potential returns per unit of risk. Military Insurance Corp is currently generating about 0.01 per unit of risk. If you would invest 1,216,286 in Ben Thanh Rubber on November 8, 2024 and sell it today you would earn a total of 218,714 from holding Ben Thanh Rubber or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
Ben Thanh Rubber vs. Military Insurance Corp
Performance |
| Timeline |
| Ben Thanh Rubber |
| Military Insurance Corp |
Ben Thanh and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ben Thanh and Military Insurance
The main advantage of trading using opposite Ben Thanh and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ben Thanh 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.| Ben Thanh vs. Long An Food | Ben Thanh vs. Hoang Huy Investment | Ben Thanh vs. Nam Long Investment | Ben Thanh vs. Ba Ria Thermal |
| Military Insurance vs. Ha Long Investment | Military Insurance vs. International Development Investment | Military Insurance vs. Mobile World Investment | Military Insurance vs. Transport and Industry |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |