Correlation Between Petrolimex Information and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Petrolimex Information and Military Insurance 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 Petrolimex Information and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrolimex Information Technology and Military Insurance Corp, you can compare the effects of market volatilities on Petrolimex Information and Military Insurance 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 Petrolimex Information with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Information and Military Insurance.
Diversification Opportunities for Petrolimex Information and Military Insurance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petrolimex and Military is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Information Technol and Military Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Military Insurance Corp and Petrolimex Information 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 Petrolimex Information Technology are associated (or correlated) with Military Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Military Insurance Corp has no effect on the direction of Petrolimex Information i.e., Petrolimex Information and Military Insurance go up and down completely randomly.
Pair Corralation between Petrolimex Information and Military Insurance
Assuming the 90 days trading horizon Petrolimex Information Technology is expected to under-perform the Military Insurance. In addition to that, Petrolimex Information is 3.8 times more volatile than Military Insurance Corp. It trades about -0.05 of its total potential returns per unit of risk. Military Insurance Corp is currently generating about -0.01 per unit of volatility. If you would invest 1,695,000 in Military Insurance Corp on August 30, 2024 and sell it today you would lose (5,000) from holding Military Insurance Corp or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.87% |
| Values | Daily Returns |
Petrolimex Information Technol vs. Military Insurance Corp
Performance |
| Timeline |
| Petrolimex Information |
| Military Insurance Corp |
Petrolimex Information and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Information and Military Insurance
The main advantage of trading using opposite Petrolimex Information and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Information position performs unexpectedly, Military Insurance 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 Military Insurance will offset losses from the drop in Military Insurance's long position.| Petrolimex Information vs. PetroVietnam Transportation Corp | Petrolimex Information vs. Travel Investment and | Petrolimex Information vs. Nam Long Investment | Petrolimex Information vs. Ba Ria Thermal |
| Military Insurance vs. Petrolimex Insurance Corp | Military Insurance vs. Hanoi Beer Alcohol | Military Insurance vs. Elcom Technology Communications | Military Insurance vs. IDJ FINANCIAL |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |