Correlation Between Petrovietnam Technical and Investment
Can any of the company-specific risk be diversified away by investing in both Petrovietnam Technical and Investment 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 Technical and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrovietnam Technical Services and Investment And Construction, you can compare the effects of market volatilities on Petrovietnam Technical and Investment 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 Technical with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrovietnam Technical and Investment.
Diversification Opportunities for Petrovietnam Technical and Investment
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Petrovietnam and Investment is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Petrovietnam Technical Service and Investment And Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment And Const and Petrovietnam Technical 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 Technical Services are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment And Const has no effect on the direction of Petrovietnam Technical i.e., Petrovietnam Technical and Investment go up and down completely randomly.
Pair Corralation between Petrovietnam Technical and Investment
Assuming the 90 days trading horizon Petrovietnam Technical Services is expected to under-perform the Investment. But the stock apears to be less risky and, when comparing its historical volatility, Petrovietnam Technical Services is 2.15 times less risky than Investment. The stock trades about -0.21 of its potential returns per unit of risk. The Investment And Construction is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,020,000 in Investment And Construction on October 12, 2024 and sell it today you would lose (40,000) from holding Investment And Construction or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrovietnam Technical Service vs. Investment And Construction
Performance |
| Timeline |
| Petrovietnam Technical |
| Investment And Const |
Petrovietnam Technical and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrovietnam Technical and Investment
The main advantage of trading using opposite Petrovietnam Technical and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrovietnam Technical position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Petrovietnam Technical vs. An Phat Plastic | Petrovietnam Technical vs. Dong Nai Plastic | Petrovietnam Technical vs. Petrolimex Information Technology | Petrovietnam Technical vs. Sao Ta Foods |
| Investment vs. Petrovietnam Technical Services | Investment vs. Elcom Technology Communications | Investment vs. Petrolimex Information Technology | Investment vs. LDG Investment JSC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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