Correlation Between 1369 Construction and PetroVietnam Drilling
Can any of the company-specific risk be diversified away by investing in both 1369 Construction 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 1369 Construction and PetroVietnam Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1369 Construction JSC and PetroVietnam Drilling Well, you can compare the effects of market volatilities on 1369 Construction 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 1369 Construction with a short position of PetroVietnam Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1369 Construction and PetroVietnam Drilling.
Diversification Opportunities for 1369 Construction and PetroVietnam Drilling
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 1369 and PetroVietnam is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding 1369 Construction JSC and PetroVietnam Drilling Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroVietnam Drilling and 1369 Construction 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 1369 Construction JSC 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 1369 Construction i.e., 1369 Construction and PetroVietnam Drilling go up and down completely randomly.
Pair Corralation between 1369 Construction and PetroVietnam Drilling
Assuming the 90 days trading horizon 1369 Construction JSC is expected to generate 1.48 times more return on investment than PetroVietnam Drilling. However, 1369 Construction is 1.48 times more volatile than PetroVietnam Drilling Well. It trades about 0.0 of its potential returns per unit of risk. PetroVietnam Drilling Well is currently generating about -0.14 per unit of risk. If you would invest 680,000 in 1369 Construction JSC on September 3, 2024 and sell it today you would lose (20,000) from holding 1369 Construction JSC or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
1369 Construction JSC vs. PetroVietnam Drilling Well
Performance |
| Timeline |
| 1369 Construction JSC |
| PetroVietnam Drilling |
1369 Construction and PetroVietnam Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1369 Construction and PetroVietnam Drilling
The main advantage of trading using opposite 1369 Construction and PetroVietnam Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1369 Construction 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.| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. Alphanam ME |
| PetroVietnam Drilling vs. FIT INVEST JSC | PetroVietnam Drilling vs. Damsan JSC | PetroVietnam Drilling vs. An Phat Plastic | PetroVietnam Drilling 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |