Correlation Between Petrolimex Petrochemical and Post
Can any of the company-specific risk be diversified away by investing in both Petrolimex Petrochemical and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on Petrolimex Petrochemical and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrolimex Petrochemical and Post.
Diversification Opportunities for Petrolimex Petrochemical and Post
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petrolimex and Post is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Petrolimex Petrochemical JSC and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of Petrolimex Petrochemical i.e., Petrolimex Petrochemical and Post go up and down completely randomly.
Pair Corralation between Petrolimex Petrochemical and Post
Assuming the 90 days trading horizon Petrolimex Petrochemical JSC is expected to generate 0.89 times more return on investment than Post. However, Petrolimex Petrochemical JSC is 1.12 times less risky than Post. It trades about 0.01 of its potential returns per unit of risk. Post and Telecommunications is currently generating about 0.0 per unit of risk. If you would invest 2,528,194 in Petrolimex Petrochemical JSC on November 1, 2024 and sell it today you would lose (68,194) from holding Petrolimex Petrochemical JSC or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrolimex Petrochemical JSC vs. Post and Telecommunications
Performance |
| Timeline |
| Petrolimex Petrochemical |
| Post and Telecommuni |
Petrolimex Petrochemical and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrolimex Petrochemical and Post
The main advantage of trading using opposite Petrolimex Petrochemical and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrolimex Petrochemical position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's long position.| Petrolimex Petrochemical vs. Vu Dang Investment | Petrolimex Petrochemical vs. Everland Investment JSC | Petrolimex Petrochemical vs. Danang Education Investment | Petrolimex Petrochemical vs. IDJ FINANCIAL |
| Post vs. Techno Agricultural Supplying | Post vs. Phuoc Hoa Rubber | Post vs. Vietnam Petroleum Transport | Post vs. Hai An Transport |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |