Correlation Between Duong Hieu and Petrolimex Insurance
Can any of the company-specific risk be diversified away by investing in both Duong Hieu 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 Duong Hieu and Petrolimex Insurance 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 Petrolimex Insurance Corp, you can compare the effects of market volatilities on Duong Hieu 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 Duong Hieu with a short position of Petrolimex Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duong Hieu and Petrolimex Insurance.
Diversification Opportunities for Duong Hieu and Petrolimex Insurance
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duong and Petrolimex is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Duong Hieu Trading 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 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 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 Duong Hieu i.e., Duong Hieu and Petrolimex Insurance go up and down completely randomly.
Pair Corralation between Duong Hieu and Petrolimex Insurance
Assuming the 90 days trading horizon Duong Hieu is expected to generate 14.64 times less return on investment than Petrolimex Insurance. In addition to that, Duong Hieu is 1.38 times more volatile than Petrolimex Insurance Corp. It trades about 0.01 of its total potential returns per unit of risk. Petrolimex Insurance Corp is currently generating about 0.11 per unit of volatility. If you would invest 2,175,000 in Petrolimex Insurance Corp on September 5, 2024 and sell it today you would earn a total of 95,000 from holding Petrolimex Insurance Corp or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.57% |
| Values | Daily Returns |
Duong Hieu Trading vs. Petrolimex Insurance Corp
Performance |
| Timeline |
| Duong Hieu Trading |
| Petrolimex Insurance Corp |
Duong Hieu and Petrolimex Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duong Hieu and Petrolimex Insurance
The main advantage of trading using opposite Duong Hieu and Petrolimex Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duong Hieu 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.| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu vs. Alphanam ME |
| Petrolimex Insurance vs. Nafoods Group JSC | Petrolimex Insurance vs. Sao Ta Foods | Petrolimex Insurance vs. Long An Food | Petrolimex Insurance vs. Duong Hieu Trading |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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