Correlation Between Military Insurance and Japan Vietnam

Can any of the company-specific risk be diversified away by investing in both Military Insurance and Japan Vietnam 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 Military Insurance and Japan Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Military Insurance Corp and Japan Vietnam Medical, you can compare the effects of market volatilities on Military Insurance and Japan Vietnam 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 Military Insurance with a short position of Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Military Insurance and Japan Vietnam.

Diversification Opportunities for Military Insurance and Japan Vietnam

0.86

Correlation Coefficient

Military Insurance  Japan Vietnam

Very poor diversification

The 3 months correlation between Military and Japan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Military Insurance Corp and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical and Military Insurance 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 Military Insurance Corp are associated (or correlated) with Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Military Insurance i.e., Military Insurance and Japan Vietnam go up and down completely randomly.

Pair Corralation between Military Insurance and Japan Vietnam

Assuming the 90 days trading horizon Military Insurance is expected to generate 3.3 times less return on investment than Japan Vietnam. But when comparing it to its historical volatility, Military Insurance Corp is 1.84 times less risky than Japan Vietnam. It trades about 0.1 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  479,000  in Japan Vietnam Medical on May 6, 2025 and sell it today you would earn a total of  131,000  from holding Japan Vietnam Medical or generate 27.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Military Insurance Corp  vs.  Japan Vietnam Medical

Military Insurance Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Military Insurance Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Military Insurance may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Japan Vietnam Medical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Japan Vietnam Medical are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Japan Vietnam displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Military Insurance and Japan Vietnam

The main advantage of trading using opposite Military Insurance and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Military Insurance position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.

The idea behind Military Insurance Corp and Japan Vietnam Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.