Correlation Between PVI Holdings and VietinBank Securities
Can any of the company-specific risk be diversified away by investing in both PVI Holdings and VietinBank Securities 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 PVI Holdings and VietinBank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PVI Holdings and VietinBank Securities JSC, you can compare the effects of market volatilities on PVI Holdings and VietinBank Securities 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 PVI Holdings with a short position of VietinBank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVI Holdings and VietinBank Securities.
Diversification Opportunities for PVI Holdings and VietinBank Securities
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PVI and VietinBank is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PVI Holdings and VietinBank Securities JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VietinBank Securities JSC and PVI Holdings 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 PVI Holdings are associated (or correlated) with VietinBank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VietinBank Securities JSC has no effect on the direction of PVI Holdings i.e., PVI Holdings and VietinBank Securities go up and down completely randomly.
Pair Corralation between PVI Holdings and VietinBank Securities
Assuming the 90 days trading horizon PVI Holdings is expected to generate 4.39 times less return on investment than VietinBank Securities. But when comparing it to its historical volatility, PVI Holdings is 2.04 times less risky than VietinBank Securities. It trades about 0.04 of its potential returns per unit of risk. VietinBank Securities JSC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,080,000 in VietinBank Securities JSC on August 25, 2024 and sell it today you would earn a total of 1,400,000 from holding VietinBank Securities JSC or generate 67.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.26% |
| Values | Daily Returns |
PVI Holdings vs. VietinBank Securities JSC
Performance |
| Timeline |
| PVI Holdings |
| VietinBank Securities JSC |
PVI Holdings and VietinBank Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PVI Holdings and VietinBank Securities
The main advantage of trading using opposite PVI Holdings and VietinBank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVI Holdings position performs unexpectedly, VietinBank Securities 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 VietinBank Securities will offset losses from the drop in VietinBank Securities' long position.| PVI Holdings vs. VietinBank Securities JSC | PVI Holdings vs. PVI Reinsurance Corp | PVI Holdings vs. Century Synthetic Fiber | PVI Holdings vs. Petrolimex Insurance Corp |
| VietinBank Securities vs. FIT INVEST JSC | VietinBank Securities vs. Damsan JSC | VietinBank Securities vs. An Phat Plastic | VietinBank Securities vs. APG Securities Joint |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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