Correlation Between Petrolimex Insurance and Tri Viet
Can any of the company-specific risk be diversified away by investing in both Petrolimex Insurance and Tri Viet 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 Tri Viet 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 Tri Viet Management, you can compare the effects of market volatilities on Petrolimex Insurance and Tri Viet 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 Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Insurance and Tri Viet.
Diversification Opportunities for Petrolimex Insurance and Tri Viet
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petrolimex and Tri is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Insurance Corp and Tri Viet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Viet Management 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 Tri Viet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Viet Management has no effect on the direction of Petrolimex Insurance i.e., Petrolimex Insurance and Tri Viet go up and down completely randomly.
Pair Corralation between Petrolimex Insurance and Tri Viet
Assuming the 90 days trading horizon Petrolimex Insurance is expected to generate 8.3 times less return on investment than Tri Viet. But when comparing it to its historical volatility, Petrolimex Insurance Corp is 1.21 times less risky than Tri Viet. It trades about 0.01 of its potential returns per unit of risk. Tri Viet Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 920,000 in Tri Viet Management on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Tri Viet Management or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.14% |
| Values | Daily Returns |
Petrolimex Insurance Corp vs. Tri Viet Management
Performance |
| Timeline |
| Petrolimex Insurance Corp |
| Tri Viet Management |
Petrolimex Insurance and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Insurance and Tri Viet
The main advantage of trading using opposite Petrolimex Insurance and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Insurance position performs unexpectedly, Tri Viet 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 Tri Viet will offset losses from the drop in Tri Viet's long position.| Petrolimex Insurance vs. FIT INVEST JSC | Petrolimex Insurance vs. Damsan JSC | Petrolimex Insurance vs. An Phat Plastic | Petrolimex Insurance vs. Alphanam ME |
| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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