Correlation Between An Phat and PetroVietnam Drilling
Can any of the company-specific risk be diversified away by investing in both An Phat and PetroVietnam Drilling 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 PetroVietnam Drilling 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 PetroVietnam Drilling Well, you can compare the effects of market volatilities on An Phat and PetroVietnam Drilling 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 PetroVietnam Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and PetroVietnam Drilling.
Diversification Opportunities for An Phat and PetroVietnam Drilling
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AAA and PetroVietnam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Plastic and PetroVietnam Drilling Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroVietnam Drilling 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 PetroVietnam Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroVietnam Drilling has no effect on the direction of An Phat i.e., An Phat and PetroVietnam Drilling go up and down completely randomly.
Pair Corralation between An Phat and PetroVietnam Drilling
Assuming the 90 days trading horizon An Phat Plastic is expected to generate 0.94 times more return on investment than PetroVietnam Drilling. However, An Phat Plastic is 1.06 times less risky than PetroVietnam Drilling. It trades about 0.04 of its potential returns per unit of risk. PetroVietnam Drilling Well is currently generating about -0.26 per unit of risk. If you would invest 840,000 in An Phat Plastic on September 2, 2024 and sell it today you would earn a total of 8,000 from holding An Phat Plastic or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Plastic vs. PetroVietnam Drilling Well
Performance |
| Timeline |
| An Phat Plastic |
| PetroVietnam Drilling |
An Phat and PetroVietnam Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and PetroVietnam Drilling
The main advantage of trading using opposite An Phat and PetroVietnam Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, PetroVietnam Drilling 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 PetroVietnam Drilling will offset losses from the drop in PetroVietnam Drilling's long position.| An Phat vs. Petrolimex Information Technology | An Phat vs. Vietnam Petroleum Transport | An Phat vs. Vietnam Airlines JSC | An Phat vs. Mechanics Construction and |
| PetroVietnam Drilling vs. LDG Investment JSC | PetroVietnam Drilling vs. Thanh Dat Investment | PetroVietnam Drilling vs. 1369 Construction JSC | PetroVietnam Drilling 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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