Correlation Between Petrolimex Insurance and Saigon Beer
Can any of the company-specific risk be diversified away by investing in both Petrolimex Insurance and Saigon Beer 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 Petrolimex Insurance and Saigon Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrolimex Insurance Corp and Saigon Beer Alcohol, you can compare the effects of market volatilities on Petrolimex Insurance and Saigon Beer 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 Petrolimex Insurance with a short position of Saigon Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Insurance and Saigon Beer.
Diversification Opportunities for Petrolimex Insurance and Saigon Beer
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petrolimex and Saigon is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Insurance Corp and Saigon Beer Alcohol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Beer Alcohol and Petrolimex Insurance 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 Petrolimex Insurance Corp are associated (or correlated) with Saigon Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Beer Alcohol has no effect on the direction of Petrolimex Insurance i.e., Petrolimex Insurance and Saigon Beer go up and down completely randomly.
Pair Corralation between Petrolimex Insurance and Saigon Beer
Assuming the 90 days trading horizon Petrolimex Insurance Corp is expected to generate 0.57 times more return on investment than Saigon Beer. However, Petrolimex Insurance Corp is 1.75 times less risky than Saigon Beer. It trades about 0.0 of its potential returns per unit of risk. Saigon Beer Alcohol is currently generating about -0.06 per unit of risk. If you would invest 2,537,001 in Petrolimex Insurance Corp on September 5, 2024 and sell it today you would lose (267,001) from holding Petrolimex Insurance Corp or give up 10.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.33% |
| Values | Daily Returns |
Petrolimex Insurance Corp vs. Saigon Beer Alcohol
Performance |
| Timeline |
| Petrolimex Insurance Corp |
| Saigon Beer Alcohol |
Petrolimex Insurance and Saigon Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Insurance and Saigon Beer
The main advantage of trading using opposite Petrolimex Insurance and Saigon Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Insurance position performs unexpectedly, Saigon Beer 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 Saigon Beer will offset losses from the drop in Saigon Beer's long position.| Petrolimex Insurance vs. Nafoods Group JSC | Petrolimex Insurance vs. Sao Ta Foods | Petrolimex Insurance vs. Long An Food | Petrolimex Insurance vs. Duong Hieu Trading |
| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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