Correlation Between An Phat and PVI Reinsurance
Can any of the company-specific risk be diversified away by investing in both An Phat and PVI Reinsurance 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 PVI Reinsurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Phat Holdings and PVI Reinsurance Corp, you can compare the effects of market volatilities on An Phat and PVI Reinsurance 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 PVI Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Phat and PVI Reinsurance.
Diversification Opportunities for An Phat and PVI Reinsurance
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APH and PVI is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding An Phat Holdings and PVI Reinsurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVI Reinsurance Corp 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 Holdings are associated (or correlated) with PVI Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVI Reinsurance Corp has no effect on the direction of An Phat i.e., An Phat and PVI Reinsurance go up and down completely randomly.
Pair Corralation between An Phat and PVI Reinsurance
Assuming the 90 days trading horizon An Phat Holdings is expected to generate 0.51 times more return on investment than PVI Reinsurance. However, An Phat Holdings is 1.95 times less risky than PVI Reinsurance. It trades about 0.09 of its potential returns per unit of risk. PVI Reinsurance Corp is currently generating about 0.02 per unit of risk. If you would invest 671,000 in An Phat Holdings on October 17, 2024 and sell it today you would earn a total of 22,000 from holding An Phat Holdings or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Phat Holdings vs. PVI Reinsurance Corp
Performance |
| Timeline |
| An Phat Holdings |
| PVI Reinsurance Corp |
An Phat and PVI Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Phat and PVI Reinsurance
The main advantage of trading using opposite An Phat and PVI Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Phat position performs unexpectedly, PVI Reinsurance 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 PVI Reinsurance will offset losses from the drop in PVI Reinsurance's long position.| An Phat vs. Song Hong Construction | An Phat vs. Techno Agricultural Supplying | An Phat vs. Saigon Machinery Spare | An Phat vs. PVI Reinsurance Corp |
| PVI Reinsurance vs. Development Investment Construction | PVI Reinsurance vs. Tien Giang Investment | PVI Reinsurance vs. Fecon Mining JSC | PVI Reinsurance vs. Tng Investment And |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |