Correlation Between POST TELECOMMU and Military Insurance
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU 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 POST TELECOMMU and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and Military Insurance Corp, you can compare the effects of market volatilities on POST TELECOMMU 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 POST TELECOMMU with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and Military Insurance.
Diversification Opportunities for POST TELECOMMU and Military Insurance
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POST and Military is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU 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 POST TELECOMMU i.e., POST TELECOMMU and Military Insurance go up and down completely randomly.
Pair Corralation between POST TELECOMMU and Military Insurance
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 1.73 times less return on investment than Military Insurance. In addition to that, POST TELECOMMU is 2.22 times more volatile than Military Insurance Corp. It trades about 0.04 of its total potential returns per unit of risk. Military Insurance Corp is currently generating about 0.13 per unit of volatility. If you would invest 1,660,000 in Military Insurance Corp on August 28, 2024 and sell it today you would earn a total of 50,000 from holding Military Insurance Corp or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
POST TELECOMMU vs. Military Insurance Corp
Performance |
| Timeline |
| POST TELECOMMU |
| Military Insurance Corp |
POST TELECOMMU and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and Military Insurance
The main advantage of trading using opposite POST TELECOMMU and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU 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.| POST TELECOMMU vs. Military Insurance Corp | POST TELECOMMU vs. Tin Nghia Industrial | POST TELECOMMU vs. Transimex Transportation JSC | POST TELECOMMU vs. Hochiminh City Metal |
| Military Insurance vs. FIT INVEST JSC | Military Insurance vs. Damsan JSC | Military Insurance vs. An Phat Plastic | Military Insurance vs. APG Securities Joint |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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