Correlation Between PVI Reinsurance and Pha Lai
Can any of the company-specific risk be diversified away by investing in both PVI Reinsurance and Pha Lai 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 Pha Lai 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 Pha Lai Thermal, you can compare the effects of market volatilities on PVI Reinsurance and Pha Lai 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 Pha Lai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVI Reinsurance and Pha Lai.
Diversification Opportunities for PVI Reinsurance and Pha Lai
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PVI and Pha is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PVI Reinsurance Corp and Pha Lai Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pha Lai Thermal 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 Pha Lai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pha Lai Thermal has no effect on the direction of PVI Reinsurance i.e., PVI Reinsurance and Pha Lai go up and down completely randomly.
Pair Corralation between PVI Reinsurance and Pha Lai
Assuming the 90 days trading horizon PVI Reinsurance is expected to generate 3.58 times less return on investment than Pha Lai. In addition to that, PVI Reinsurance is 6.53 times more volatile than Pha Lai Thermal. It trades about 0.02 of its total potential returns per unit of risk. Pha Lai Thermal is currently generating about 0.38 per unit of volatility. If you would invest 1,095,000 in Pha Lai Thermal on November 7, 2024 and sell it today you would earn a total of 35,000 from holding Pha Lai Thermal or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.5% |
| Values | Daily Returns |
PVI Reinsurance Corp vs. Pha Lai Thermal
Performance |
| Timeline |
| PVI Reinsurance Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Pha Lai Thermal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
PVI Reinsurance and Pha Lai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PVI Reinsurance and Pha Lai
The main advantage of trading using opposite PVI Reinsurance and Pha Lai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVI Reinsurance position performs unexpectedly, Pha Lai 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 Pha Lai will offset losses from the drop in Pha Lai's long position.| PVI Reinsurance vs. Elcom Technology Communications | PVI Reinsurance vs. Innovative Technology Development | PVI Reinsurance vs. HVC Investment and |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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