Correlation Between Transimex Transportation and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation 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 Transimex Transportation and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and Military Insurance Corp, you can compare the effects of market volatilities on Transimex Transportation 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 Transimex Transportation with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and Military Insurance.
Diversification Opportunities for Transimex Transportation and Military Insurance
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Transimex and Military is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC 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 Transimex Transportation 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 Transimex Transportation JSC 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 Transimex Transportation i.e., Transimex Transportation and Military Insurance go up and down completely randomly.
Pair Corralation between Transimex Transportation and Military Insurance
Assuming the 90 days trading horizon Transimex Transportation is expected to generate 3.61 times less return on investment than Military Insurance. But when comparing it to its historical volatility, Transimex Transportation JSC is 2.35 times less risky than Military Insurance. It trades about 0.04 of its potential returns per unit of risk. Military Insurance Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,680,000 in Military Insurance Corp on September 14, 2024 and sell it today you would earn a total of 45,000 from holding Military Insurance Corp or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Transimex Transportation JSC vs. Military Insurance Corp
Performance |
| Timeline |
| Transimex Transportation |
| Military Insurance Corp |
Transimex Transportation and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and Military Insurance
The main advantage of trading using opposite Transimex Transportation and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation 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.| Transimex Transportation vs. Dong Nai Plastic | Transimex Transportation vs. TDG Global Investment | Transimex Transportation vs. Transport and Industry | Transimex Transportation vs. Vu Dang Investment |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |