Correlation Between Thanh Dat and Military Insurance
Can any of the company-specific risk be diversified away by investing in both Thanh Dat 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 Thanh Dat and Military Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanh Dat Investment and Military Insurance Corp, you can compare the effects of market volatilities on Thanh Dat 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 Thanh Dat with a short position of Military Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanh Dat and Military Insurance.
Diversification Opportunities for Thanh Dat and Military Insurance
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thanh and Military is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Thanh Dat Investment 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 Thanh Dat 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 Thanh Dat Investment 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 Thanh Dat i.e., Thanh Dat and Military Insurance go up and down completely randomly.
Pair Corralation between Thanh Dat and Military Insurance
Assuming the 90 days trading horizon Thanh Dat Investment is expected to under-perform the Military Insurance. In addition to that, Thanh Dat is 1.21 times more volatile than Military Insurance Corp. It trades about -0.08 of its total potential returns per unit of risk. Military Insurance Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,753,800 in Military Insurance Corp on December 4, 2024 and sell it today you would earn a total of 61,200 from holding Military Insurance Corp or generate 3.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Thanh Dat Investment vs. Military Insurance Corp
Performance |
Timeline |
Thanh Dat Investment |
Military Insurance Corp |
Thanh Dat and Military Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thanh Dat and Military Insurance
The main advantage of trading using opposite Thanh Dat and Military Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanh Dat 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.Thanh Dat vs. Kien Giang Construction | Thanh Dat vs. Bich Chi Food | Thanh Dat vs. Transport and Industry | Thanh Dat vs. Song Hong Construction |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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