Correlation Between PetroVietnam Drilling and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both PetroVietnam Drilling and 1369 Construction 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 1369 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetroVietnam Drilling Well and 1369 Construction JSC, you can compare the effects of market volatilities on PetroVietnam Drilling and 1369 Construction 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 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Drilling and 1369 Construction.
Diversification Opportunities for PetroVietnam Drilling and 1369 Construction
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PetroVietnam and 1369 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Drilling Well and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC 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 Well are associated (or correlated) with 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of PetroVietnam Drilling i.e., PetroVietnam Drilling and 1369 Construction go up and down completely randomly.
Pair Corralation between PetroVietnam Drilling and 1369 Construction
Assuming the 90 days trading horizon PetroVietnam Drilling Well is expected to under-perform the 1369 Construction. But the stock apears to be less risky and, when comparing its historical volatility, PetroVietnam Drilling Well is 1.18 times less risky than 1369 Construction. The stock trades about -0.17 of its potential returns per unit of risk. The 1369 Construction JSC is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 670,000 in 1369 Construction JSC on September 12, 2024 and sell it today you would lose (30,000) from holding 1369 Construction JSC or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroVietnam Drilling Well vs. 1369 Construction JSC
Performance |
| Timeline |
| PetroVietnam Drilling |
| 1369 Construction JSC |
PetroVietnam Drilling and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroVietnam Drilling and 1369 Construction
The main advantage of trading using opposite PetroVietnam Drilling and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Drilling position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| PetroVietnam Drilling vs. FIT INVEST JSC | PetroVietnam Drilling vs. Damsan JSC | PetroVietnam Drilling vs. An Phat Plastic | PetroVietnam Drilling vs. Alphanam ME |
| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. Alphanam ME |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |