Correlation Between Duong Hieu and International Gas
Can any of the company-specific risk be diversified away by investing in both Duong Hieu and International Gas 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 Duong Hieu and International Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duong Hieu Trading and International Gas Product, you can compare the effects of market volatilities on Duong Hieu and International Gas 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 Duong Hieu with a short position of International Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duong Hieu and International Gas.
Diversification Opportunities for Duong Hieu and International Gas
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Duong and International is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Duong Hieu Trading and International Gas Product in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Gas Product and Duong Hieu 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 Duong Hieu Trading are associated (or correlated) with International Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Gas Product has no effect on the direction of Duong Hieu i.e., Duong Hieu and International Gas go up and down completely randomly.
Pair Corralation between Duong Hieu and International Gas
Assuming the 90 days trading horizon Duong Hieu Trading is expected to generate 0.62 times more return on investment than International Gas. However, Duong Hieu Trading is 1.62 times less risky than International Gas. It trades about 0.04 of its potential returns per unit of risk. International Gas Product is currently generating about -0.06 per unit of risk. If you would invest 730,000 in Duong Hieu Trading on September 14, 2024 and sell it today you would earn a total of 118,000 from holding Duong Hieu Trading or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duong Hieu Trading vs. International Gas Product
Performance |
| Timeline |
| Duong Hieu Trading |
| International Gas Product |
Duong Hieu and International Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duong Hieu and International Gas
The main advantage of trading using opposite Duong Hieu and International Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duong Hieu position performs unexpectedly, International Gas 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 International Gas will offset losses from the drop in International Gas' long position.| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. Alphanam ME |
| International Gas vs. Duong Hieu Trading | International Gas vs. PetroVietnam Transportation Corp | International Gas vs. Construction And Investment | International Gas vs. MST 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |