Correlation Between Vincom Retail and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Vincom Retail 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 Vincom Retail and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vincom Retail JSC and Military Insurance Corp, you can compare the effects of market volatilities on Vincom Retail 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 Vincom Retail with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vincom Retail and Military Insurance.
Diversification Opportunities for Vincom Retail and Military Insurance
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vincom and Military is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vincom Retail 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 Vincom Retail 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 Vincom Retail 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 Vincom Retail i.e., Vincom Retail and Military Insurance go up and down completely randomly.
Pair Corralation between Vincom Retail and Military Insurance
Assuming the 90 days trading horizon Vincom Retail JSC is expected to under-perform the Military Insurance. In addition to that, Vincom Retail is 1.05 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 0.03 per unit of volatility. If you would invest 1,360,899 in Military Insurance Corp on August 28, 2024 and sell it today you would earn a total of 349,101 from holding Military Insurance Corp or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vincom Retail JSC vs. Military Insurance Corp
Performance |
| Timeline |
| Vincom Retail JSC |
| Military Insurance Corp |
Vincom Retail and Military Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vincom Retail and Military Insurance
The main advantage of trading using opposite Vincom Retail and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vincom Retail 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.| Vincom Retail vs. FIT INVEST JSC | Vincom Retail vs. Damsan JSC | Vincom Retail vs. An Phat Plastic | Vincom Retail vs. APG Securities Joint |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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