Correlation Between Military Insurance and Tri Viet
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Tri Viet 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 Tri Viet 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 Tri Viet Management, you can compare the effects of market volatilities on Military Insurance and Tri Viet 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 Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Tri Viet.
Diversification Opportunities for Military Insurance and Tri Viet
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Military and Tri is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Tri Viet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Viet Management 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 Tri Viet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Viet Management has no effect on the direction of Military Insurance i.e., Military Insurance and Tri Viet go up and down completely randomly.
Pair Corralation between Military Insurance and Tri Viet
Assuming the 90 days trading horizon Military Insurance Corp is expected to generate 1.15 times more return on investment than Tri Viet. However, Military Insurance is 1.15 times more volatile than Tri Viet Management. It trades about 0.06 of its potential returns per unit of risk. Tri Viet Management is currently generating about -0.17 per unit of risk. If you would invest 1,750,000 in Military Insurance Corp on November 30, 2024 and sell it today you would earn a total of 65,000 from holding Military Insurance Corp or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Military Insurance Corp vs. Tri Viet Management
Performance |
| Timeline |
| Military Insurance Corp |
| Tri Viet Management |
Military Insurance and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Tri Viet
The main advantage of trading using opposite Military Insurance and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Tri Viet 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 Tri Viet will offset losses from the drop in Tri Viet's long position.| Military Insurance vs. Construction JSC No5 | Military Insurance vs. VTC Telecommunications JSC | Military Insurance vs. Nafoods Group JSC | Military Insurance vs. South Basic Chemicals |
| Tri Viet vs. Kien Giang Construction | Tri Viet vs. Song Hong Construction | Tri Viet vs. Japan Vietnam Medical | Tri Viet vs. Development Investment Construction |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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