Correlation Between Military Insurance and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics JSC, you can compare the effects of market volatilities on Military Insurance and Hanoi Plastics 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 Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Hanoi Plastics.
Diversification Opportunities for Military Insurance and Hanoi Plastics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Military and Hanoi is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics JSC 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 Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of Military Insurance i.e., Military Insurance and Hanoi Plastics go up and down completely randomly.
Pair Corralation between Military Insurance and Hanoi Plastics
Assuming the 90 days trading horizon Military Insurance Corp is expected to generate 1.23 times more return on investment than Hanoi Plastics. However, Military Insurance is 1.23 times more volatile than Hanoi Plastics JSC. It trades about 0.01 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about -0.07 per unit of risk. If you would invest 1,700,424 in Military Insurance Corp on November 8, 2024 and sell it today you would earn a total of 29,576 from holding Military Insurance Corp or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Hanoi Plastics JSC
Performance |
| Timeline |
| Military Insurance Corp |
| Hanoi Plastics JSC |
Military Insurance and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Hanoi Plastics
The main advantage of trading using opposite Military Insurance and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Hanoi Plastics 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 Hanoi Plastics will offset losses from the drop in Hanoi Plastics' long position.| Military Insurance vs. Ha Long Investment | Military Insurance vs. International Development Investment | Military Insurance vs. Mobile World Investment | Military Insurance vs. Transport and Industry |
| Hanoi Plastics vs. Binh Minh Plastics | Hanoi Plastics vs. Vnsteel Vicasa JSC | Hanoi Plastics vs. International Development Investment | Hanoi Plastics vs. Pha Le Plastics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |