Correlation Between Hai An and PV2 Investment
Can any of the company-specific risk be diversified away by investing in both Hai An and PV2 Investment 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 Hai An and PV2 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hai An Transport and PV2 Investment JSC, you can compare the effects of market volatilities on Hai An and PV2 Investment 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 Hai An with a short position of PV2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hai An and PV2 Investment.
Diversification Opportunities for Hai An and PV2 Investment
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hai and PV2 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hai An Transport and PV2 Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PV2 Investment JSC and Hai An 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 Hai An Transport are associated (or correlated) with PV2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PV2 Investment JSC has no effect on the direction of Hai An i.e., Hai An and PV2 Investment go up and down completely randomly.
Pair Corralation between Hai An and PV2 Investment
Assuming the 90 days trading horizon Hai An Transport is expected to generate 0.71 times more return on investment than PV2 Investment. However, Hai An Transport is 1.4 times less risky than PV2 Investment. It trades about 0.14 of its potential returns per unit of risk. PV2 Investment JSC is currently generating about -0.04 per unit of risk. If you would invest 4,670,000 in Hai An Transport on September 13, 2024 and sell it today you would earn a total of 320,000 from holding Hai An Transport or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hai An Transport vs. PV2 Investment JSC
Performance |
| Timeline |
| Hai An Transport |
| PV2 Investment JSC |
Hai An and PV2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hai An and PV2 Investment
The main advantage of trading using opposite Hai An and PV2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hai An position performs unexpectedly, PV2 Investment 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 PV2 Investment will offset losses from the drop in PV2 Investment's long position.| Hai An vs. 1369 Construction JSC | Hai An vs. Techno Agricultural Supplying | Hai An vs. Saigon Viendong Technology | Hai An vs. Binh Duong Construction |
| PV2 Investment vs. Petrolimex Information Technology | PV2 Investment vs. BaoMinh Insurance Corp | PV2 Investment vs. Picomat Plastic JSC | PV2 Investment vs. Vnsteel Vicasa 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |