Correlation Between International Gas and Duong Hieu
Can any of the company-specific risk be diversified away by investing in both International Gas and Duong Hieu 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 International Gas and Duong Hieu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Gas Product and Duong Hieu Trading, you can compare the effects of market volatilities on International Gas and Duong Hieu 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 International Gas with a short position of Duong Hieu. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Gas and Duong Hieu.
Diversification Opportunities for International Gas and Duong Hieu
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and Duong is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding International Gas Product and Duong Hieu Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duong Hieu Trading and International Gas 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 International Gas Product are associated (or correlated) with Duong Hieu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duong Hieu Trading has no effect on the direction of International Gas i.e., International Gas and Duong Hieu go up and down completely randomly.
Pair Corralation between International Gas and Duong Hieu
Assuming the 90 days trading horizon International Gas Product is expected to under-perform the Duong Hieu. In addition to that, International Gas is 1.62 times more volatile than Duong Hieu Trading. It trades about -0.06 of its total potential returns per unit of risk. Duong Hieu Trading is currently generating about 0.04 per unit of volatility. 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 |
International Gas Product vs. Duong Hieu Trading
Performance |
| Timeline |
| International Gas Product |
| Duong Hieu Trading |
International Gas and Duong Hieu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Gas and Duong Hieu
The main advantage of trading using opposite International Gas and Duong Hieu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Gas position performs unexpectedly, Duong Hieu 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 Duong Hieu will offset losses from the drop in Duong Hieu's long position.| International Gas vs. Duong Hieu Trading | International Gas vs. PetroVietnam Transportation Corp | International Gas vs. Construction And Investment | International Gas vs. MST Investment JSC |
| Duong Hieu vs. FIT INVEST JSC | Duong Hieu vs. Damsan JSC | Duong Hieu vs. An Phat Plastic | Duong Hieu 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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