Correlation Between PetroVietnam Drilling and Din Capital
Can any of the company-specific risk be diversified away by investing in both PetroVietnam Drilling and Din Capital 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 Din Capital 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 Din Capital Investment, you can compare the effects of market volatilities on PetroVietnam Drilling and Din Capital 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 Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Drilling and Din Capital.
Diversification Opportunities for PetroVietnam Drilling and Din Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroVietnam and Din is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Drilling Well and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital Investment 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 Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of PetroVietnam Drilling i.e., PetroVietnam Drilling and Din Capital go up and down completely randomly.
Pair Corralation between PetroVietnam Drilling and Din Capital
Assuming the 90 days trading horizon PetroVietnam Drilling Well is expected to under-perform the Din Capital. But the stock apears to be less risky and, when comparing its historical volatility, PetroVietnam Drilling Well is 1.6 times less risky than Din Capital. The stock trades about -0.26 of its potential returns per unit of risk. The Din Capital Investment is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 920,000 in Din Capital Investment on September 2, 2024 and sell it today you would earn a total of 100,000 from holding Din Capital Investment or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PetroVietnam Drilling Well vs. Din Capital Investment
Performance |
| Timeline |
| PetroVietnam Drilling |
| Din Capital Investment |
PetroVietnam Drilling and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroVietnam Drilling and Din Capital
The main advantage of trading using opposite PetroVietnam Drilling and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Drilling position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| PetroVietnam Drilling vs. LDG Investment JSC | PetroVietnam Drilling vs. Thanh Dat Investment | PetroVietnam Drilling vs. 1369 Construction JSC | PetroVietnam Drilling vs. Vu Dang Investment |
| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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