Correlation Between Military Insurance and Khang Minh
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Khang 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 Khang 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 Khang Minh Brick, you can compare the effects of market volatilities on Military Insurance and Khang 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 Khang Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Khang Minh.
Diversification Opportunities for Military Insurance and Khang Minh
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Military and Khang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Khang Minh Brick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khang Minh Brick 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 Khang Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khang Minh Brick has no effect on the direction of Military Insurance i.e., Military Insurance and Khang Minh go up and down completely randomly.
Pair Corralation between Military Insurance and Khang Minh
Assuming the 90 days trading horizon Military Insurance Corp is expected to generate 0.52 times more return on investment than Khang Minh. However, Military Insurance Corp is 1.92 times less risky than Khang Minh. It trades about 0.06 of its potential returns per unit of risk. Khang Minh Brick is currently generating about 0.02 per unit of risk. If you would invest 1,730,000 in Military Insurance Corp on September 12, 2024 and sell it today you would earn a total of 45,000 from holding Military Insurance Corp or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Khang Minh Brick
Performance |
| Timeline |
| Military Insurance Corp |
| Khang Minh Brick |
Military Insurance and Khang Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Khang Minh
The main advantage of trading using opposite Military Insurance and Khang Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Khang 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 Khang Minh will offset losses from the drop in Khang Minh's long position.| Military Insurance vs. FIT INVEST JSC | Military Insurance vs. Damsan JSC | Military Insurance vs. An Phat Plastic | Military Insurance vs. Alphanam ME |
| Khang Minh vs. Military Insurance Corp | Khang Minh vs. Viettel Construction JSC | Khang Minh vs. DOMESCO Medical Import | Khang Minh vs. 1369 Construction JSC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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