Correlation Between PV2 Investment and Khang Minh
Can any of the company-specific risk be diversified away by investing in both PV2 Investment and Khang Minh 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 PV2 Investment and Khang Minh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PV2 Investment JSC and Khang Minh Brick, you can compare the effects of market volatilities on PV2 Investment and Khang Minh 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 PV2 Investment with a short position of Khang Minh. Check out your portfolio center. Please also check ongoing floating volatility patterns of PV2 Investment and Khang Minh.
Diversification Opportunities for PV2 Investment and Khang Minh
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PV2 and Khang is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PV2 Investment JSC and Khang Minh Brick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khang Minh Brick and PV2 Investment 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 PV2 Investment JSC are associated (or correlated) with Khang Minh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khang Minh Brick has no effect on the direction of PV2 Investment i.e., PV2 Investment and Khang Minh go up and down completely randomly.
Pair Corralation between PV2 Investment and Khang Minh
Assuming the 90 days trading horizon PV2 Investment JSC is expected to under-perform the Khang Minh. But the stock apears to be less risky and, when comparing its historical volatility, PV2 Investment JSC is 1.43 times less risky than Khang Minh. The stock trades about -0.04 of its potential returns per unit of risk. The Khang Minh Brick is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 580,000 in Khang Minh Brick on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Khang Minh Brick or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PV2 Investment JSC vs. Khang Minh Brick
Performance |
| Timeline |
| PV2 Investment JSC |
| Khang Minh Brick |
PV2 Investment and Khang Minh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PV2 Investment and Khang Minh
The main advantage of trading using opposite PV2 Investment and Khang Minh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PV2 Investment position performs unexpectedly, Khang Minh 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 Khang Minh will offset losses from the drop in Khang Minh's long position.| PV2 Investment vs. FIT INVEST JSC | PV2 Investment vs. Damsan JSC | PV2 Investment vs. An Phat Plastic | PV2 Investment vs. Alphanam ME |
| Khang Minh vs. Military Insurance Corp | Khang Minh vs. Viettel Construction JSC | Khang Minh vs. DOMESCO Medical Import | Khang Minh vs. 1369 Construction JSC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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