Correlation Between PetroVietnam Transportation and Ben Thanh
Can any of the company-specific risk be diversified away by investing in both PetroVietnam Transportation and Ben Thanh 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 Transportation and Ben Thanh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetroVietnam Transportation Corp and Ben Thanh Rubber, you can compare the effects of market volatilities on PetroVietnam Transportation and Ben Thanh 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 Transportation with a short position of Ben Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Transportation and Ben Thanh.
Diversification Opportunities for PetroVietnam Transportation and Ben Thanh
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroVietnam and Ben is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Transportation Co and Ben Thanh Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ben Thanh Rubber and PetroVietnam Transportation 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 Transportation Corp are associated (or correlated) with Ben Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ben Thanh Rubber has no effect on the direction of PetroVietnam Transportation i.e., PetroVietnam Transportation and Ben Thanh go up and down completely randomly.
Pair Corralation between PetroVietnam Transportation and Ben Thanh
Assuming the 90 days trading horizon PetroVietnam Transportation Corp is expected to under-perform the Ben Thanh. In addition to that, PetroVietnam Transportation is 1.12 times more volatile than Ben Thanh Rubber. It trades about 0.0 of its total potential returns per unit of risk. Ben Thanh Rubber is currently generating about 0.23 per unit of volatility. If you would invest 1,335,000 in Ben Thanh Rubber on August 28, 2024 and sell it today you would earn a total of 75,000 from holding Ben Thanh Rubber or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroVietnam Transportation Co vs. Ben Thanh Rubber
Performance |
| Timeline |
| PetroVietnam Transportation |
| Ben Thanh Rubber |
PetroVietnam Transportation and Ben Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroVietnam Transportation and Ben Thanh
The main advantage of trading using opposite PetroVietnam Transportation and Ben Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Transportation position performs unexpectedly, Ben Thanh 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 Ben Thanh will offset losses from the drop in Ben Thanh's long position.| PetroVietnam Transportation vs. FIT INVEST JSC | PetroVietnam Transportation vs. Damsan JSC | PetroVietnam Transportation vs. An Phat Plastic | PetroVietnam Transportation vs. APG Securities Joint |
| Ben Thanh vs. Hochiminh City Metal | Ben Thanh vs. Techno Agricultural Supplying | Ben Thanh vs. FPT Digital Retail | Ben Thanh vs. Binh Duong Trade |
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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