Correlation Between La Hien and Petrolimex Insurance
Can any of the company-specific risk be diversified away by investing in both La Hien and Petrolimex Insurance 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 La Hien and Petrolimex Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between La Hien Cement and Petrolimex Insurance Corp, you can compare the effects of market volatilities on La Hien and Petrolimex Insurance 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 La Hien with a short position of Petrolimex Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of La Hien and Petrolimex Insurance.
Diversification Opportunities for La Hien and Petrolimex Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CLH and Petrolimex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding La Hien Cement and Petrolimex Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex Insurance Corp and La Hien 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 La Hien Cement are associated (or correlated) with Petrolimex Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrolimex Insurance Corp has no effect on the direction of La Hien i.e., La Hien and Petrolimex Insurance go up and down completely randomly.
Pair Corralation between La Hien and Petrolimex Insurance
If you would invest 2,460,700 in Petrolimex Insurance Corp on September 12, 2024 and sell it today you would lose (180,700) from holding Petrolimex Insurance Corp or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
La Hien Cement vs. Petrolimex Insurance Corp
Performance |
| Timeline |
| La Hien Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Petrolimex Insurance Corp |
La Hien and Petrolimex Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with La Hien and Petrolimex Insurance
The main advantage of trading using opposite La Hien and Petrolimex Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if La Hien position performs unexpectedly, Petrolimex Insurance 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 Insurance will offset losses from the drop in Petrolimex Insurance's long position.| La Hien vs. Tienlen Steel Corp | La Hien vs. Vincom Retail JSC | La Hien vs. Construction And Investment | La Hien vs. Everland Investment JSC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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