Correlation Between Petrolimex Information and Thong Nhat
Can any of the company-specific risk be diversified away by investing in both Petrolimex Information and Thong Nhat 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 Thong Nhat 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 Thong Nhat Rubber, you can compare the effects of market volatilities on Petrolimex Information and Thong Nhat 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 Thong Nhat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Information and Thong Nhat.
Diversification Opportunities for Petrolimex Information and Thong Nhat
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Petrolimex and Thong is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Information Technol and Thong Nhat Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thong Nhat Rubber 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 Thong Nhat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thong Nhat Rubber has no effect on the direction of Petrolimex Information i.e., Petrolimex Information and Thong Nhat go up and down completely randomly.
Pair Corralation between Petrolimex Information and Thong Nhat
Assuming the 90 days trading horizon Petrolimex Information is expected to generate 1.8 times less return on investment than Thong Nhat. In addition to that, Petrolimex Information is 1.28 times more volatile than Thong Nhat Rubber. It trades about 0.04 of its total potential returns per unit of risk. Thong Nhat Rubber is currently generating about 0.08 per unit of volatility. If you would invest 3,410,000 in Thong Nhat Rubber on September 13, 2024 and sell it today you would earn a total of 90,000 from holding Thong Nhat Rubber or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
Petrolimex Information Technol vs. Thong Nhat Rubber
Performance |
| Timeline |
| Petrolimex Information |
| Thong Nhat Rubber |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petrolimex Information and Thong Nhat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Information and Thong Nhat
The main advantage of trading using opposite Petrolimex Information and Thong Nhat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Information position performs unexpectedly, Thong Nhat 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 Thong Nhat will offset losses from the drop in Thong Nhat's long position.| Petrolimex Information vs. Sao Ta Foods | Petrolimex Information vs. Vincom Retail JSC | Petrolimex Information vs. Global Electrical Technology | Petrolimex Information vs. Fecon Mining JSC |
| Thong Nhat vs. FIT INVEST JSC | Thong Nhat vs. Damsan JSC | Thong Nhat vs. An Phat Plastic | Thong Nhat 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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