Correlation Between An Phat and Petrolimex International
Can any of the company-specific risk be diversified away by investing in both An Phat and Petrolimex International 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 An Phat and Petrolimex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Plastic and Petrolimex International Trading, you can compare the effects of market volatilities on An Phat and Petrolimex International 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 An Phat with a short position of Petrolimex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and Petrolimex International.
Diversification Opportunities for An Phat and Petrolimex International
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AAA and Petrolimex is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and Petrolimex International Tradi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex International and An Phat 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 An Phat Plastic are associated (or correlated) with Petrolimex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrolimex International has no effect on the direction of An Phat i.e., An Phat and Petrolimex International go up and down completely randomly.
Pair Corralation between An Phat and Petrolimex International
Assuming the 90 days trading horizon An Phat Plastic is expected to under-perform the Petrolimex International. But the stock apears to be less risky and, when comparing its historical volatility, An Phat Plastic is 1.49 times less risky than Petrolimex International. The stock trades about -0.03 of its potential returns per unit of risk. The Petrolimex International Trading is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 504,000 in Petrolimex International Trading on August 31, 2024 and sell it today you would earn a total of 11,000 from holding Petrolimex International Trading or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.86% |
| Values | Daily Returns |
An Phat Plastic vs. Petrolimex International Tradi
Performance |
| Timeline |
| An Phat Plastic |
| Petrolimex International |
An Phat and Petrolimex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and Petrolimex International
The main advantage of trading using opposite An Phat and Petrolimex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, Petrolimex International 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 Petrolimex International will offset losses from the drop in Petrolimex International's long position.| An Phat vs. Dong A Hotel | An Phat vs. Military Insurance Corp | An Phat vs. Vinhomes JSC | An Phat vs. Techcom Vietnam REIT |
| Petrolimex International vs. FIT INVEST JSC | Petrolimex International vs. Damsan JSC | Petrolimex International vs. An Phat Plastic | Petrolimex International vs. Alphanam ME |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |