Correlation Between Military Insurance and VTC Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Military Insurance and VTC Telecommunicatio 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 VTC Telecommunicatio 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 VTC Telecommunications JSC, you can compare the effects of market volatilities on Military Insurance and VTC Telecommunicatio 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 VTC Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and VTC Telecommunicatio.
Diversification Opportunities for Military Insurance and VTC Telecommunicatio
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Military and VTC is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and VTC Telecommunications JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VTC Telecommunications 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 VTC Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VTC Telecommunications has no effect on the direction of Military Insurance i.e., Military Insurance and VTC Telecommunicatio go up and down completely randomly.
Pair Corralation between Military Insurance and VTC Telecommunicatio
Assuming the 90 days trading horizon Military Insurance is expected to generate 1.16 times less return on investment than VTC Telecommunicatio. But when comparing it to its historical volatility, Military Insurance Corp is 2.51 times less risky than VTC Telecommunicatio. It trades about 0.02 of its potential returns per unit of risk. VTC Telecommunications JSC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,053,204 in VTC Telecommunications JSC on September 2, 2024 and sell it today you would lose (203,204) from holding VTC Telecommunications JSC or give up 19.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.26% |
| Values | Daily Returns |
Military Insurance Corp vs. VTC Telecommunications JSC
Performance |
| Timeline |
| Military Insurance Corp |
| VTC Telecommunications |
Military Insurance and VTC Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Military Insurance and VTC Telecommunicatio
The main advantage of trading using opposite Military Insurance and VTC Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, VTC Telecommunicatio 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 VTC Telecommunicatio will offset losses from the drop in VTC Telecommunicatio'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 |
| VTC Telecommunicatio vs. Song Hong Garment | VTC Telecommunicatio vs. Alphanam ME | VTC Telecommunicatio vs. Hochiminh City Metal | VTC Telecommunicatio vs. Atesco Industrial Cartering |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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