Correlation Between POST TELECOMMU and PV2 Investment
Can any of the company-specific risk be diversified away by investing in both POST TELECOMMU and PV2 Investment 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 POST TELECOMMU and PV2 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POST TELECOMMU and PV2 Investment JSC, you can compare the effects of market volatilities on POST TELECOMMU and PV2 Investment 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 POST TELECOMMU with a short position of PV2 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of POST TELECOMMU and PV2 Investment.
Diversification Opportunities for POST TELECOMMU and PV2 Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POST and PV2 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding POST TELECOMMU and PV2 Investment JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PV2 Investment JSC and POST TELECOMMU 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 POST TELECOMMU are associated (or correlated) with PV2 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PV2 Investment JSC has no effect on the direction of POST TELECOMMU i.e., POST TELECOMMU and PV2 Investment go up and down completely randomly.
Pair Corralation between POST TELECOMMU and PV2 Investment
Assuming the 90 days trading horizon POST TELECOMMU is expected to generate 3.97 times less return on investment than PV2 Investment. In addition to that, POST TELECOMMU is 1.1 times more volatile than PV2 Investment JSC. It trades about 0.01 of its total potential returns per unit of risk. PV2 Investment JSC is currently generating about 0.05 per unit of volatility. If you would invest 210,000 in PV2 Investment JSC on November 2, 2024 and sell it today you would earn a total of 190,000 from holding PV2 Investment JSC or generate 90.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.19% |
| Values | Daily Returns |
POST TELECOMMU vs. PV2 Investment JSC
Performance |
| Timeline |
| POST TELECOMMU |
| PV2 Investment JSC |
POST TELECOMMU and PV2 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POST TELECOMMU and PV2 Investment
The main advantage of trading using opposite POST TELECOMMU and PV2 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POST TELECOMMU position performs unexpectedly, PV2 Investment 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 PV2 Investment will offset losses from the drop in PV2 Investment's long position.| POST TELECOMMU vs. PostTelecommunication Equipment | POST TELECOMMU vs. Saigon Beer Alcohol | POST TELECOMMU vs. VTC Telecommunications JSC | POST TELECOMMU vs. Elcom Technology Communications |
| PV2 Investment vs. Post and Telecommunications | PV2 Investment vs. Transport and Industry | PV2 Investment vs. Everland Investment JSC | PV2 Investment vs. Vietnam National Reinsurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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