Correlation Between Petrovietnam Drilling and Bentre Aquaproduct
Can any of the company-specific risk be diversified away by investing in both Petrovietnam Drilling and Bentre Aquaproduct 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 Petrovietnam Drilling and Bentre Aquaproduct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrovietnam Drilling Mud and Bentre Aquaproduct Import, you can compare the effects of market volatilities on Petrovietnam Drilling and Bentre Aquaproduct 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 Petrovietnam Drilling with a short position of Bentre Aquaproduct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrovietnam Drilling and Bentre Aquaproduct.
Diversification Opportunities for Petrovietnam Drilling and Bentre Aquaproduct
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petrovietnam and Bentre is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Petrovietnam Drilling Mud and Bentre Aquaproduct Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentre Aquaproduct Import and Petrovietnam Drilling 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 Petrovietnam Drilling Mud are associated (or correlated) with Bentre Aquaproduct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentre Aquaproduct Import has no effect on the direction of Petrovietnam Drilling i.e., Petrovietnam Drilling and Bentre Aquaproduct go up and down completely randomly.
Pair Corralation between Petrovietnam Drilling and Bentre Aquaproduct
Assuming the 90 days trading horizon Petrovietnam Drilling is expected to generate 22.46 times less return on investment than Bentre Aquaproduct. But when comparing it to its historical volatility, Petrovietnam Drilling Mud is 1.01 times less risky than Bentre Aquaproduct. It trades about 0.0 of its potential returns per unit of risk. Bentre Aquaproduct Import is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,265,252 in Bentre Aquaproduct Import on October 16, 2024 and sell it today you would earn a total of 684,748 from holding Bentre Aquaproduct Import or generate 20.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Petrovietnam Drilling Mud vs. Bentre Aquaproduct Import
Performance |
| Timeline |
| Petrovietnam Drilling Mud |
| Bentre Aquaproduct Import |
Petrovietnam Drilling and Bentre Aquaproduct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrovietnam Drilling and Bentre Aquaproduct
The main advantage of trading using opposite Petrovietnam Drilling and Bentre Aquaproduct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrovietnam Drilling position performs unexpectedly, Bentre Aquaproduct 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 Bentre Aquaproduct will offset losses from the drop in Bentre Aquaproduct's long position.| Petrovietnam Drilling vs. BaoMinh Insurance Corp | Petrovietnam Drilling vs. Binh Minh Plastics | Petrovietnam Drilling vs. Tri Viet Management | Petrovietnam Drilling vs. Tienlen Steel Corp |
| Bentre Aquaproduct vs. Saigon Telecommunication Technologies | Bentre Aquaproduct vs. POST TELECOMMU | Bentre Aquaproduct vs. Tien Giang Investment | Bentre Aquaproduct vs. Petrovietnam Drilling Mud |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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