Correlation Between Military Insurance and PVI Reinsurance
Can any of the company-specific risk be diversified away by investing in both Military Insurance and PVI Reinsurance 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 PVI Reinsurance 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 PVI Reinsurance Corp, you can compare the effects of market volatilities on Military Insurance and PVI Reinsurance 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 PVI Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and PVI Reinsurance.
Diversification Opportunities for Military Insurance and PVI Reinsurance
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Military and PVI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and PVI Reinsurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVI Reinsurance Corp 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 PVI Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVI Reinsurance Corp has no effect on the direction of Military Insurance i.e., Military Insurance and PVI Reinsurance go up and down completely randomly.
Pair Corralation between Military Insurance and PVI Reinsurance
Assuming the 90 days trading horizon Military Insurance is expected to generate 1.36 times less return on investment than PVI Reinsurance. But when comparing it to its historical volatility, Military Insurance Corp is 1.46 times less risky than PVI Reinsurance. It trades about 0.02 of its potential returns per unit of risk. PVI Reinsurance Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,750,000 in PVI Reinsurance Corp on August 25, 2024 and sell it today you would earn a total of 40,000 from holding PVI Reinsurance Corp or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.88% |
| Values | Daily Returns |
Military Insurance Corp vs. PVI Reinsurance Corp
Performance |
| Timeline |
| Military Insurance Corp |
| PVI Reinsurance Corp |
Military Insurance and PVI Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and PVI Reinsurance
The main advantage of trading using opposite Military Insurance and PVI Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, PVI Reinsurance 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 PVI Reinsurance will offset losses from the drop in PVI Reinsurance's long position.| Military Insurance vs. FIT INVEST JSC | Military Insurance vs. Damsan JSC | Military Insurance vs. An Phat Plastic | Military Insurance vs. APG Securities Joint |
| PVI Reinsurance vs. Military Insurance Corp | PVI Reinsurance vs. PetroVietnam Transportation Corp | PVI Reinsurance vs. BIDV Insurance Corp | PVI Reinsurance vs. FPT Digital Retail |
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.
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