Correlation Between VietinBank Securities and Military Insurance
Can any of the company-specific risk be diversified away by investing in both VietinBank Securities 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 VietinBank Securities and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VietinBank Securities JSC and Military Insurance Corp, you can compare the effects of market volatilities on VietinBank Securities 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 VietinBank Securities with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and Military Insurance.
Diversification Opportunities for VietinBank Securities and Military Insurance
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between VietinBank and Military is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities JSC 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 VietinBank Securities 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 VietinBank Securities JSC 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 VietinBank Securities i.e., VietinBank Securities and Military Insurance go up and down completely randomly.
Pair Corralation between VietinBank Securities and Military Insurance
Assuming the 90 days trading horizon VietinBank Securities JSC is expected to generate 1.06 times more return on investment than Military Insurance. However, VietinBank Securities is 1.06 times more volatile than Military Insurance Corp. It trades about -0.18 of its potential returns per unit of risk. Military Insurance Corp is currently generating about -0.29 per unit of risk. If you would invest 3,535,000 in VietinBank Securities JSC on November 3, 2024 and sell it today you would lose (175,000) from holding VietinBank Securities JSC or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VietinBank Securities JSC vs. Military Insurance Corp
Performance |
| Timeline |
| VietinBank Securities JSC |
| Military Insurance Corp |
VietinBank Securities and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VietinBank Securities and Military Insurance
The main advantage of trading using opposite VietinBank Securities and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities 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.| VietinBank Securities vs. Sea Air Freight | VietinBank Securities vs. IDJ FINANCIAL | VietinBank Securities vs. Military Insurance Corp | VietinBank Securities vs. DOMESCO Medical Import |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |