Correlation Between Military Insurance and Tin Nghia
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Tin Nghia 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 Tin Nghia 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 Tin Nghia Industrial, you can compare the effects of market volatilities on Military Insurance and Tin Nghia 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 Tin Nghia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Tin Nghia.
Diversification Opportunities for Military Insurance and Tin Nghia
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Military and Tin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Tin Nghia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tin Nghia Industrial 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 Tin Nghia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tin Nghia Industrial has no effect on the direction of Military Insurance i.e., Military Insurance and Tin Nghia go up and down completely randomly.
Pair Corralation between Military Insurance and Tin Nghia
Assuming the 90 days trading horizon Military Insurance Corp is expected to under-perform the Tin Nghia. In addition to that, Military Insurance is 2.65 times more volatile than Tin Nghia Industrial. It trades about -0.25 of its total potential returns per unit of risk. Tin Nghia Industrial is currently generating about -0.24 per unit of volatility. If you would invest 2,145,000 in Tin Nghia Industrial on October 22, 2024 and sell it today you would lose (65,000) from holding Tin Nghia Industrial or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Tin Nghia Industrial
Performance |
| Timeline |
| Military Insurance Corp |
| Tin Nghia Industrial |
Military Insurance and Tin Nghia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Tin Nghia
The main advantage of trading using opposite Military Insurance and Tin Nghia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Tin Nghia 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 Tin Nghia will offset losses from the drop in Tin Nghia's long position.| Military Insurance vs. Sea Air Freight | Military Insurance vs. Hoang Huy Investment | Military Insurance vs. Vinhomes JSC | Military Insurance vs. Saigon Viendong Technology |
| Tin Nghia vs. Military Insurance Corp | Tin Nghia vs. Truong Thanh Furniture | Tin Nghia vs. Pha Le Plastics | Tin Nghia vs. Saigon Telecommunication Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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