Correlation Between Nam Long and Petrolimex Information
Can any of the company-specific risk be diversified away by investing in both Nam Long and Petrolimex Information 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 Nam Long and Petrolimex Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nam Long Investment and Petrolimex Information Technology, you can compare the effects of market volatilities on Nam Long and Petrolimex Information 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 Nam Long with a short position of Petrolimex Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nam Long and Petrolimex Information.
Diversification Opportunities for Nam Long and Petrolimex Information
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nam and Petrolimex is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nam Long Investment and Petrolimex Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex Information and Nam Long 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 Nam Long Investment are associated (or correlated) with Petrolimex Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrolimex Information has no effect on the direction of Nam Long i.e., Nam Long and Petrolimex Information go up and down completely randomly.
Pair Corralation between Nam Long and Petrolimex Information
Assuming the 90 days trading horizon Nam Long is expected to generate 4.33 times less return on investment than Petrolimex Information. But when comparing it to its historical volatility, Nam Long Investment is 2.32 times less risky than Petrolimex Information. It trades about 0.02 of its potential returns per unit of risk. Petrolimex Information Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,384,687 in Petrolimex Information Technology on November 28, 2024 and sell it today you would earn a total of 595,313 from holding Petrolimex Information Technology or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Nam Long Investment vs. Petrolimex Information Technol
Performance |
| Timeline |
| Nam Long Investment |
| Petrolimex Information |
Nam Long and Petrolimex Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nam Long and Petrolimex Information
The main advantage of trading using opposite Nam Long and Petrolimex Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nam Long position performs unexpectedly, Petrolimex Information 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 Information will offset losses from the drop in Petrolimex Information's long position.| Nam Long vs. FIT INVEST JSC | Nam Long vs. Damsan JSC | Nam Long vs. An Phat Plastic | Nam Long vs. Alphanam ME |
| Petrolimex Information vs. Materials Petroleum JSC | Petrolimex Information vs. Pha Le Plastics | Petrolimex Information vs. Long An Food | Petrolimex Information 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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