Correlation Between Military Insurance and Kinh Bac
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Kinh Bac 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 Kinh Bac 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 Kinh Bac City, you can compare the effects of market volatilities on Military Insurance and Kinh Bac 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 Kinh Bac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Kinh Bac.
Diversification Opportunities for Military Insurance and Kinh Bac
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Military and Kinh is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Kinh Bac City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinh Bac City 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 Kinh Bac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinh Bac City has no effect on the direction of Military Insurance i.e., Military Insurance and Kinh Bac go up and down completely randomly.
Pair Corralation between Military Insurance and Kinh Bac
Assuming the 90 days trading horizon Military Insurance Corp is expected to generate 0.7 times more return on investment than Kinh Bac. However, Military Insurance Corp is 1.44 times less risky than Kinh Bac. It trades about 0.18 of its potential returns per unit of risk. Kinh Bac City is currently generating about 0.11 per unit of risk. If you would invest 1,695,000 in Military Insurance Corp on September 2, 2024 and sell it today you would earn a total of 115,000 from holding Military Insurance Corp or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Kinh Bac City
Performance |
| Timeline |
| Military Insurance Corp |
| Kinh Bac City |
Military Insurance and Kinh Bac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Kinh Bac
The main advantage of trading using opposite Military Insurance and Kinh Bac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Kinh Bac 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 Kinh Bac will offset losses from the drop in Kinh Bac'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 |
| Kinh Bac vs. Materials Petroleum JSC | Kinh Bac vs. Petrolimex International Trading | Kinh Bac vs. Thanh Dat Investment | Kinh Bac vs. Tien Giang Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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