Correlation Between Military Insurance and Vietnam National
Can any of the company-specific risk be diversified away by investing in both Military Insurance and Vietnam National 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 National 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 National Reinsurance, you can compare the effects of market volatilities on Military Insurance and Vietnam National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Vietnam National.
Diversification Opportunities for Military Insurance and Vietnam National
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Military and Vietnam is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Vietnam National Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam National Rei 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam National Rei has no effect on the direction of Military Insurance i.e., Military Insurance and Vietnam National go up and down completely randomly.
Pair Corralation between Military Insurance and Vietnam National
Assuming the 90 days trading horizon Military Insurance is expected to generate 1.08 times less return on investment than Vietnam National. In addition to that, Military Insurance is 1.56 times more volatile than Vietnam National Reinsurance. It trades about 0.04 of its total potential returns per unit of risk. Vietnam National Reinsurance is currently generating about 0.07 per unit of volatility. If you would invest 1,741,866 in Vietnam National Reinsurance on November 30, 2024 and sell it today you would earn a total of 758,134 from holding Vietnam National Reinsurance or generate 43.52% 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 National Reinsurance
Performance |
| Timeline |
| Military Insurance Corp |
| Vietnam National Rei |
Military Insurance and Vietnam National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and Vietnam National
The main advantage of trading using opposite Military Insurance and Vietnam National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Vietnam National 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 National will offset losses from the drop in Vietnam National'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 |
| Vietnam National vs. Investment And Construction | Vietnam National vs. Agriculture Printing and | Vietnam National vs. Vietnam Petroleum Transport | Vietnam National vs. Riverway Management JSC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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