Correlation Between Petrovietnam Drilling and Hochiminh City
Can any of the company-specific risk be diversified away by investing in both Petrovietnam Drilling and Hochiminh City 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 Hochiminh City 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 Hochiminh City Metal, you can compare the effects of market volatilities on Petrovietnam Drilling and Hochiminh City 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 Hochiminh City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrovietnam Drilling and Hochiminh City.
Diversification Opportunities for Petrovietnam Drilling and Hochiminh City
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petrovietnam and Hochiminh is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Petrovietnam Drilling Mud and Hochiminh City Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochiminh City Metal 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 Hochiminh City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hochiminh City Metal has no effect on the direction of Petrovietnam Drilling i.e., Petrovietnam Drilling and Hochiminh City go up and down completely randomly.
Pair Corralation between Petrovietnam Drilling and Hochiminh City
If you would invest 0.00 in Petrovietnam Drilling Mud on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Petrovietnam Drilling Mud or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Petrovietnam Drilling Mud vs. Hochiminh City Metal
Performance |
| Timeline |
| Petrovietnam Drilling Mud |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hochiminh City Metal |
Petrovietnam Drilling and Hochiminh City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrovietnam Drilling and Hochiminh City
The main advantage of trading using opposite Petrovietnam Drilling and Hochiminh City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrovietnam Drilling position performs unexpectedly, Hochiminh City 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 Hochiminh City will offset losses from the drop in Hochiminh City's long position.| Petrovietnam Drilling vs. Cotec Construction JSC | Petrovietnam Drilling vs. Development Investment Construction | Petrovietnam Drilling vs. Ba Ria Thermal | Petrovietnam Drilling vs. Fecon Mining JSC |
| Hochiminh City vs. Tri Viet Management | Hochiminh City vs. Tay Ninh Rubber | Hochiminh City vs. Hanoi Plastics JSC | Hochiminh City vs. Post and Telecommunications |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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