Correlation Between Petrolimex Information and Kinh Bac
Can any of the company-specific risk be diversified away by investing in both Petrolimex Information and Kinh Bac 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 Information and Kinh Bac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrolimex Information Technology and Kinh Bac City, you can compare the effects of market volatilities on Petrolimex Information and Kinh Bac 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 Information with a short position of Kinh Bac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Information and Kinh Bac.
Diversification Opportunities for Petrolimex Information and Kinh Bac
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petrolimex and Kinh is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Information Technol and Kinh Bac City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinh Bac City and Petrolimex Information 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 Information Technology are associated (or correlated) with Kinh Bac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinh Bac City has no effect on the direction of Petrolimex Information i.e., Petrolimex Information and Kinh Bac go up and down completely randomly.
Pair Corralation between Petrolimex Information and Kinh Bac
Assuming the 90 days trading horizon Petrolimex Information is expected to generate 2.73 times less return on investment than Kinh Bac. In addition to that, Petrolimex Information is 1.55 times more volatile than Kinh Bac City. It trades about 0.03 of its total potential returns per unit of risk. Kinh Bac City is currently generating about 0.11 per unit of volatility. If you would invest 2,635,000 in Kinh Bac City on September 2, 2024 and sell it today you would earn a total of 145,000 from holding Kinh Bac City or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Petrolimex Information Technol vs. Kinh Bac City
Performance |
| Timeline |
| Petrolimex Information |
| Kinh Bac City |
Petrolimex Information and Kinh Bac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Information and Kinh Bac
The main advantage of trading using opposite Petrolimex Information and Kinh Bac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Information position performs unexpectedly, Kinh Bac 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 Kinh Bac will offset losses from the drop in Kinh Bac's long position.| Petrolimex Information vs. Song Hong Garment | Petrolimex Information vs. Alphanam ME | Petrolimex Information vs. Hochiminh City Metal | Petrolimex Information vs. Atesco Industrial Cartering |
| Kinh Bac vs. Materials Petroleum JSC | Kinh Bac vs. Petrolimex International Trading | Kinh Bac vs. Thanh Dat Investment | Kinh Bac vs. Tien Giang 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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