Correlation Between Petrolimex Petrochemical and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both Petrolimex Petrochemical and Asia Commercial 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 Petrochemical and Asia Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrolimex Petrochemical JSC and Asia Commercial Bank, you can compare the effects of market volatilities on Petrolimex Petrochemical and Asia Commercial 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 Petrochemical with a short position of Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Petrochemical and Asia Commercial.
Diversification Opportunities for Petrolimex Petrochemical and Asia Commercial
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Petrolimex and Asia is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Petrochemical JSC and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank and Petrolimex Petrochemical 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 Petrochemical JSC are associated (or correlated) with Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of Petrolimex Petrochemical i.e., Petrolimex Petrochemical and Asia Commercial go up and down completely randomly.
Pair Corralation between Petrolimex Petrochemical and Asia Commercial
Assuming the 90 days trading horizon Petrolimex Petrochemical JSC is expected to under-perform the Asia Commercial. In addition to that, Petrolimex Petrochemical is 1.04 times more volatile than Asia Commercial Bank. It trades about -0.17 of its total potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.02 per unit of volatility. If you would invest 2,435,000 in Asia Commercial Bank on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Asia Commercial Bank or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrolimex Petrochemical JSC vs. Asia Commercial Bank
Performance |
| Timeline |
| Petrolimex Petrochemical |
| Asia Commercial Bank |
Petrolimex Petrochemical and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Petrochemical and Asia Commercial
The main advantage of trading using opposite Petrolimex Petrochemical and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Petrochemical position performs unexpectedly, Asia Commercial 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 Asia Commercial will offset losses from the drop in Asia Commercial's long position.| Petrolimex Petrochemical vs. FIT INVEST JSC | Petrolimex Petrochemical vs. Damsan JSC | Petrolimex Petrochemical vs. An Phat Plastic | Petrolimex Petrochemical vs. Alphanam ME |
| Asia Commercial vs. Military Insurance Corp | Asia Commercial vs. Fecon Mining JSC | Asia Commercial vs. Agriculture Printing and | Asia Commercial vs. BaoMinh Insurance Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |