Correlation Between PetroVietnam Drilling and HNX 30
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By analyzing existing cross correlation between PetroVietnam Drilling Well and HNX 30, you can compare the effects of market volatilities on PetroVietnam Drilling and HNX 30 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 HNX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Drilling and HNX 30.
Diversification Opportunities for PetroVietnam Drilling and HNX 30
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PetroVietnam and HNX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Drilling Well and HNX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX 30 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 HNX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX 30 has no effect on the direction of PetroVietnam Drilling i.e., PetroVietnam Drilling and HNX 30 go up and down completely randomly.
Pair Corralation between PetroVietnam Drilling and HNX 30
Assuming the 90 days trading horizon PetroVietnam Drilling Well is expected to under-perform the HNX 30. In addition to that, PetroVietnam Drilling is 1.41 times more volatile than HNX 30. It trades about -0.03 of its total potential returns per unit of risk. HNX 30 is currently generating about -0.02 per unit of volatility. If you would invest 48,780 in HNX 30 on October 18, 2024 and sell it today you would lose (3,587) from holding HNX 30 or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
PetroVietnam Drilling Well vs. HNX 30
Performance |
| Timeline |
PetroVietnam Drilling and HNX 30 Volatility Contrast
Predicted Return Density |
| Returns |
PetroVietnam Drilling Well
Pair trading matchups for PetroVietnam Drilling
HNX 30
Pair trading matchups for HNX 30
Pair Trading with PetroVietnam Drilling and HNX 30
The main advantage of trading using opposite PetroVietnam Drilling and HNX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Drilling position performs unexpectedly, HNX 30 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 HNX 30 will offset losses from the drop in HNX 30's long position.| PetroVietnam Drilling vs. Thu Duc TradingImport | PetroVietnam Drilling vs. HUD1 Investment and | PetroVietnam Drilling vs. Transport and Industry | PetroVietnam Drilling vs. Hai An Transport |
| HNX 30 vs. PetroVietnam Drilling Well | HNX 30 vs. Transport and Industry | HNX 30 vs. Riverway Management JSC | HNX 30 vs. Dong A Hotel |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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