Correlation Between Petrolimex International and Hoang Huy
Can any of the company-specific risk be diversified away by investing in both Petrolimex International and Hoang Huy 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 International and Hoang Huy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrolimex International Trading and Hoang Huy Investment, you can compare the effects of market volatilities on Petrolimex International and Hoang Huy 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 International with a short position of Hoang Huy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex International and Hoang Huy.
Diversification Opportunities for Petrolimex International and Hoang Huy
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Petrolimex and Hoang is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex International Tradi and Hoang Huy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoang Huy Investment and Petrolimex International 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 International Trading are associated (or correlated) with Hoang Huy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoang Huy Investment has no effect on the direction of Petrolimex International i.e., Petrolimex International and Hoang Huy go up and down completely randomly.
Pair Corralation between Petrolimex International and Hoang Huy
Assuming the 90 days trading horizon Petrolimex International is expected to generate 2.73 times less return on investment than Hoang Huy. In addition to that, Petrolimex International is 1.12 times more volatile than Hoang Huy Investment. It trades about 0.02 of its total potential returns per unit of risk. Hoang Huy Investment is currently generating about 0.07 per unit of volatility. If you would invest 360,762 in Hoang Huy Investment on October 31, 2024 and sell it today you would earn a total of 370,238 from holding Hoang Huy Investment or generate 102.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Petrolimex International Tradi vs. Hoang Huy Investment
Performance |
| Timeline |
| Petrolimex International |
| Hoang Huy Investment |
Petrolimex International and Hoang Huy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex International and Hoang Huy
The main advantage of trading using opposite Petrolimex International and Hoang Huy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex International position performs unexpectedly, Hoang Huy 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 Hoang Huy will offset losses from the drop in Hoang Huy's long position.| Petrolimex International vs. Vu Dang Investment | Petrolimex International vs. HVC Investment and | Petrolimex International vs. Dong A Hotel | Petrolimex International vs. Danang Education Investment |
| Hoang Huy vs. FIT INVEST JSC | Hoang Huy vs. Damsan JSC | Hoang Huy vs. An Phat Plastic | Hoang Huy vs. APG Securities Joint |
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 CEOs Directory module to screen CEOs from public companies around the world.
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