Correlation Between Military Insurance and TNS Holdings
Can any of the company-specific risk be diversified away by investing in both Military Insurance and TNS Holdings 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 TNS Holdings 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 TNS Holdings JSC, you can compare the effects of market volatilities on Military Insurance and TNS Holdings 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 TNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and TNS Holdings.
Diversification Opportunities for Military Insurance and TNS Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Military and TNS is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and TNS Holdings JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNS Holdings 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 TNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNS Holdings JSC has no effect on the direction of Military Insurance i.e., Military Insurance and TNS Holdings go up and down completely randomly.
Pair Corralation between Military Insurance and TNS Holdings
Assuming the 90 days trading horizon Military Insurance is expected to generate 228.81 times less return on investment than TNS Holdings. But when comparing it to its historical volatility, Military Insurance Corp is 51.71 times less risky than TNS Holdings. It trades about 0.02 of its potential returns per unit of risk. TNS Holdings JSC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,349,476 in TNS Holdings JSC on September 12, 2024 and sell it today you would lose (279,476) from holding TNS Holdings JSC or give up 20.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.97% |
| Values | Daily Returns |
Military Insurance Corp vs. TNS Holdings JSC
Performance |
| Timeline |
| Military Insurance Corp |
| TNS Holdings JSC |
Military Insurance and TNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and TNS Holdings
The main advantage of trading using opposite Military Insurance and TNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, TNS Holdings 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 TNS Holdings will offset losses from the drop in TNS Holdings' long position.| Military Insurance vs. Southern Rubber Industry | Military Insurance vs. FPT Digital Retail | Military Insurance vs. Elcom Technology Communications | Military Insurance vs. Hanoi Plastics JSC |
| TNS Holdings vs. Petrolimex Petrochemical JSC | TNS Holdings vs. Ducgiang Chemicals Detergent | TNS Holdings vs. Military Insurance Corp | TNS Holdings vs. Mechanics Construction and |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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