Correlation Between Military Insurance and VBC
Can any of the company-specific risk be diversified away by investing in both Military Insurance and VBC 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 VBC 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 VBC, you can compare the effects of market volatilities on Military Insurance and VBC 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 VBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and VBC.
Diversification Opportunities for Military Insurance and VBC
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Military and VBC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and VBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBC 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 VBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBC has no effect on the direction of Military Insurance i.e., Military Insurance and VBC go up and down completely randomly.
Pair Corralation between Military Insurance and VBC
If you would invest (100.00) in VBC on September 2, 2024 and sell it today you would earn a total of 100.00 from holding VBC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Military Insurance Corp vs. VBC
Performance |
| Timeline |
| Military Insurance Corp |
| VBC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Military Insurance and VBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and VBC
The main advantage of trading using opposite Military Insurance and VBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, VBC 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 VBC will offset losses from the drop in VBC's long position.| Military Insurance vs. FIT INVEST JSC | Military Insurance vs. Damsan JSC | Military Insurance vs. An Phat Plastic | Military Insurance vs. Alphanam ME |
| VBC vs. Thanh Dat Investment | VBC vs. Development Investment Construction | VBC vs. MST Investment JSC | VBC vs. Techcom Vietnam REIT |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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