Correlation Between Pacific Petroleum and Tin Nghia
Can any of the company-specific risk be diversified away by investing in both Pacific Petroleum and Tin Nghia 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 Tin Nghia 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 Tin Nghia Industrial, you can compare the effects of market volatilities on Pacific Petroleum and Tin Nghia 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 Tin Nghia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Petroleum and Tin Nghia.
Diversification Opportunities for Pacific Petroleum and Tin Nghia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pacific and Tin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Petroleum Transportati and Tin Nghia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tin Nghia Industrial 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 Tin Nghia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tin Nghia Industrial has no effect on the direction of Pacific Petroleum i.e., Pacific Petroleum and Tin Nghia go up and down completely randomly.
Pair Corralation between Pacific Petroleum and Tin Nghia
Assuming the 90 days trading horizon Pacific Petroleum Transportation is expected to generate 1.08 times more return on investment than Tin Nghia. However, Pacific Petroleum is 1.08 times more volatile than Tin Nghia Industrial. It trades about 0.06 of its potential returns per unit of risk. Tin Nghia Industrial is currently generating about 0.05 per unit of risk. If you would invest 931,034 in Pacific Petroleum Transportation on September 12, 2024 and sell it today you would earn a total of 703,966 from holding Pacific Petroleum Transportation or generate 75.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.78% |
| Values | Daily Returns |
Pacific Petroleum Transportati vs. Tin Nghia Industrial
Performance |
| Timeline |
| Pacific Petroleum |
| Tin Nghia Industrial |
Pacific Petroleum and Tin Nghia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Petroleum and Tin Nghia
The main advantage of trading using opposite Pacific Petroleum and Tin Nghia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Petroleum position performs unexpectedly, Tin Nghia 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 Tin Nghia will offset losses from the drop in Tin Nghia's long position.| Pacific Petroleum vs. Vietnam Petroleum Transport | Pacific Petroleum vs. Post and Telecommunications | Pacific Petroleum vs. Thanh Dat Investment | Pacific Petroleum vs. Travel Investment and |
| Tin Nghia vs. POST TELECOMMU | Tin Nghia vs. Construction And Investment | Tin Nghia vs. Dinhvu Port Investment | Tin Nghia vs. Petrolimex Information Technology |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |