Correlation Between Pacific Petroleum and COMA 18
Can any of the company-specific risk be diversified away by investing in both Pacific Petroleum and COMA 18 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 Pacific Petroleum and COMA 18 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Petroleum Transportation and COMA 18 JSC, you can compare the effects of market volatilities on Pacific Petroleum and COMA 18 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 Pacific Petroleum with a short position of COMA 18. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Petroleum and COMA 18.
Diversification Opportunities for Pacific Petroleum and COMA 18
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pacific and COMA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Petroleum Transportati and COMA 18 JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMA 18 JSC and Pacific Petroleum 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 Pacific Petroleum Transportation are associated (or correlated) with COMA 18. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMA 18 JSC has no effect on the direction of Pacific Petroleum i.e., Pacific Petroleum and COMA 18 go up and down completely randomly.
Pair Corralation between Pacific Petroleum and COMA 18
Assuming the 90 days trading horizon Pacific Petroleum Transportation is expected to under-perform the COMA 18. But the stock apears to be less risky and, when comparing its historical volatility, Pacific Petroleum Transportation is 1.87 times less risky than COMA 18. The stock trades about -0.16 of its potential returns per unit of risk. The COMA 18 JSC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 840,000 in COMA 18 JSC on October 24, 2024 and sell it today you would earn a total of 20,000 from holding COMA 18 JSC or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Petroleum Transportati vs. COMA 18 JSC
Performance |
| Timeline |
| Pacific Petroleum |
| COMA 18 JSC |
Pacific Petroleum and COMA 18 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Petroleum and COMA 18
The main advantage of trading using opposite Pacific Petroleum and COMA 18 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Petroleum position performs unexpectedly, COMA 18 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 COMA 18 will offset losses from the drop in COMA 18's long position.| Pacific Petroleum vs. Innovative Technology Development | Pacific Petroleum vs. Tri Viet Management | Pacific Petroleum vs. Visicons Construction and | Pacific Petroleum vs. Investment And Construction |
| COMA 18 vs. South Basic Chemicals | COMA 18 vs. FPT Corp | COMA 18 vs. BIDV Insurance Corp | COMA 18 vs. Japan Vietnam Medical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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