Correlation Between PetroVietnam Transportation and Hai An
Can any of the company-specific risk be diversified away by investing in both PetroVietnam Transportation and Hai An 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 Hai An 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 Hai An Transport, you can compare the effects of market volatilities on PetroVietnam Transportation and Hai An 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 Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Transportation and Hai An.
Diversification Opportunities for PetroVietnam Transportation and Hai An
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroVietnam and Hai is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Transportation Co and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport 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 Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of PetroVietnam Transportation i.e., PetroVietnam Transportation and Hai An go up and down completely randomly.
Pair Corralation between PetroVietnam Transportation and Hai An
Assuming the 90 days trading horizon PetroVietnam Transportation Corp is expected to under-perform the Hai An. But the stock apears to be less risky and, when comparing its historical volatility, PetroVietnam Transportation Corp is 1.81 times less risky than Hai An. The stock trades about 0.0 of its potential returns per unit of risk. The Hai An Transport is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,320,000 in Hai An Transport on August 28, 2024 and sell it today you would earn a total of 385,000 from holding Hai An Transport or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroVietnam Transportation Co vs. Hai An Transport
Performance |
| Timeline |
| PetroVietnam Transportation |
| Hai An Transport |
PetroVietnam Transportation and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroVietnam Transportation and Hai An
The main advantage of trading using opposite PetroVietnam Transportation and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Transportation position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An'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 |
| Hai An vs. FIT INVEST JSC | Hai An vs. Damsan JSC | Hai An vs. An Phat Plastic | Hai An 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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