Correlation Between Military Insurance and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Vietnam Technological 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 Vietnam Technological 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 Vietnam Technological And, you can compare the effects of market volatilities on Military Insurance and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Vietnam Technological.
Diversification Opportunities for Military Insurance and Vietnam Technological
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Military and Vietnam is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of Military Insurance i.e., Military Insurance and Vietnam Technological go up and down completely randomly.
Pair Corralation between Military Insurance and Vietnam Technological
Assuming the 90 days trading horizon Military Insurance Corp is expected to under-perform the Vietnam Technological. In addition to that, Military Insurance is 1.29 times more volatile than Vietnam Technological And. It trades about -0.28 of its total potential returns per unit of risk. Vietnam Technological And is currently generating about 0.04 per unit of volatility. If you would invest 2,400,000 in Vietnam Technological And on October 25, 2024 and sell it today you would earn a total of 20,000 from holding Vietnam Technological And or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Vietnam Technological And
Performance |
| Timeline |
| Military Insurance Corp |
| Vietnam Technological And |
Military Insurance and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Vietnam Technological
The main advantage of trading using opposite Military Insurance and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological'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 |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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