Correlation Between HNX 30 and Petrovietnam Technical
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By analyzing existing cross correlation between HNX 30 and Petrovietnam Technical Services, you can compare the effects of market volatilities on HNX 30 and Petrovietnam Technical 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 HNX 30 with a short position of Petrovietnam Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Petrovietnam Technical.
Diversification Opportunities for HNX 30 and Petrovietnam Technical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HNX and Petrovietnam is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Petrovietnam Technical Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrovietnam Technical and HNX 30 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 HNX 30 are associated (or correlated) with Petrovietnam Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrovietnam Technical has no effect on the direction of HNX 30 i.e., HNX 30 and Petrovietnam Technical go up and down completely randomly.
Pair Corralation between HNX 30 and Petrovietnam Technical
Assuming the 90 days trading horizon HNX 30 is expected to generate 1.65 times less return on investment than Petrovietnam Technical. But when comparing it to its historical volatility, HNX 30 is 1.16 times less risky than Petrovietnam Technical. It trades about 0.03 of its potential returns per unit of risk. Petrovietnam Technical Services is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,254,023 in Petrovietnam Technical Services on August 24, 2024 and sell it today you would earn a total of 1,055,977 from holding Petrovietnam Technical Services or generate 46.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
HNX 30 vs. Petrovietnam Technical Service
Performance |
| Timeline |
HNX 30 and Petrovietnam Technical Volatility Contrast
Predicted Return Density |
| Returns |
HNX 30
Pair trading matchups for HNX 30
Petrovietnam Technical Services
Pair trading matchups for Petrovietnam Technical
Pair Trading with HNX 30 and Petrovietnam Technical
The main advantage of trading using opposite HNX 30 and Petrovietnam Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 position performs unexpectedly, Petrovietnam Technical 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 Petrovietnam Technical will offset losses from the drop in Petrovietnam Technical's long position.| HNX 30 vs. Petrolimex Petrochemical JSC | HNX 30 vs. Dong A Hotel | HNX 30 vs. Vincom Retail JSC | HNX 30 vs. VTC Telecommunications JSC |
| Petrovietnam Technical vs. HUD1 Investment and | Petrovietnam Technical vs. Taseco Air Services | Petrovietnam Technical vs. Asia Pacific Investment | Petrovietnam Technical vs. Danang Education Investment |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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