Correlation Between Military Insurance and Binh Minh
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Binh Minh 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 Military Insurance and Binh Minh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Military Insurance Corp and Binh Minh Plastics, you can compare the effects of market volatilities on Military Insurance and Binh Minh 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 Military Insurance with a short position of Binh Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Binh Minh.
Diversification Opportunities for Military Insurance and Binh Minh
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Military and Binh is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Binh Minh Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Minh Plastics and Military Insurance 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 Military Insurance Corp are associated (or correlated) with Binh Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Minh Plastics has no effect on the direction of Military Insurance i.e., Military Insurance and Binh Minh go up and down completely randomly.
Pair Corralation between Military Insurance and Binh Minh
Assuming the 90 days trading horizon Military Insurance is expected to generate 10.81 times less return on investment than Binh Minh. But when comparing it to its historical volatility, Military Insurance Corp is 1.18 times less risky than Binh Minh. It trades about 0.01 of its potential returns per unit of risk. Binh Minh Plastics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,512,898 in Binh Minh Plastics on October 12, 2024 and sell it today you would earn a total of 6,987,102 from holding Binh Minh Plastics or generate 107.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Military Insurance Corp vs. Binh Minh Plastics
Performance |
| Timeline |
| Military Insurance Corp |
| Binh Minh Plastics |
Military Insurance and Binh Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Binh Minh
The main advantage of trading using opposite Military Insurance and Binh Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Binh Minh 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 Binh Minh will offset losses from the drop in Binh Minh's long position.| Military Insurance vs. South Books Educational | Military Insurance vs. Sea Air Freight | Military Insurance vs. Techno Agricultural Supplying | Military Insurance vs. Long An Food |
| Binh Minh vs. BIDV Insurance Corp | Binh Minh vs. BaoMinh Insurance Corp | Binh Minh vs. CEO Group JSC | Binh Minh vs. Saigon Viendong Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance |