Correlation Between PVI Reinsurance and Cuulong Fish
Can any of the company-specific risk be diversified away by investing in both PVI Reinsurance and Cuulong Fish 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 PVI Reinsurance and Cuulong Fish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PVI Reinsurance Corp and Cuulong Fish JSC, you can compare the effects of market volatilities on PVI Reinsurance and Cuulong Fish 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 PVI Reinsurance with a short position of Cuulong Fish. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVI Reinsurance and Cuulong Fish.
Diversification Opportunities for PVI Reinsurance and Cuulong Fish
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PVI and Cuulong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PVI Reinsurance Corp and Cuulong Fish JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuulong Fish JSC and PVI Reinsurance 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 PVI Reinsurance Corp are associated (or correlated) with Cuulong Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuulong Fish JSC has no effect on the direction of PVI Reinsurance i.e., PVI Reinsurance and Cuulong Fish go up and down completely randomly.
Pair Corralation between PVI Reinsurance and Cuulong Fish
Assuming the 90 days trading horizon PVI Reinsurance Corp is expected to under-perform the Cuulong Fish. In addition to that, PVI Reinsurance is 1.83 times more volatile than Cuulong Fish JSC. It trades about -0.18 of its total potential returns per unit of risk. Cuulong Fish JSC is currently generating about -0.09 per unit of volatility. If you would invest 1,190,000 in Cuulong Fish JSC on August 29, 2024 and sell it today you would lose (25,000) from holding Cuulong Fish JSC or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
PVI Reinsurance Corp vs. Cuulong Fish JSC
Performance |
| Timeline |
| PVI Reinsurance Corp |
| Cuulong Fish JSC |
PVI Reinsurance and Cuulong Fish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PVI Reinsurance and Cuulong Fish
The main advantage of trading using opposite PVI Reinsurance and Cuulong Fish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVI Reinsurance position performs unexpectedly, Cuulong Fish 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 Cuulong Fish will offset losses from the drop in Cuulong Fish's long position.| PVI Reinsurance vs. FIT INVEST JSC | PVI Reinsurance vs. Damsan JSC | PVI Reinsurance vs. An Phat Plastic | PVI Reinsurance vs. APG Securities Joint |
| Cuulong Fish vs. DIC Holdings Construction | Cuulong Fish vs. Agriculture Printing and | Cuulong Fish vs. Hung Hau Agricultural | Cuulong Fish vs. Hochiminh City Metal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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