Correlation Between PetroVietnam Transportation and HNX 30
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By analyzing existing cross correlation between PetroVietnam Transportation Corp and HNX 30, you can compare the effects of market volatilities on PetroVietnam Transportation and HNX 30 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 HNX 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroVietnam Transportation and HNX 30.
Diversification Opportunities for PetroVietnam Transportation and HNX 30
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroVietnam and HNX is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding PetroVietnam Transportation Co and HNX 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNX 30 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 HNX 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNX 30 has no effect on the direction of PetroVietnam Transportation i.e., PetroVietnam Transportation and HNX 30 go up and down completely randomly.
Pair Corralation between PetroVietnam Transportation and HNX 30
Assuming the 90 days trading horizon PetroVietnam Transportation Corp is expected to generate 1.22 times more return on investment than HNX 30. However, PetroVietnam Transportation is 1.22 times more volatile than HNX 30. It trades about 0.04 of its potential returns per unit of risk. HNX 30 is currently generating about 0.04 per unit of risk. If you would invest 1,951,308 in PetroVietnam Transportation Corp on November 27, 2024 and sell it today you would earn a total of 678,692 from holding PetroVietnam Transportation Corp or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
PetroVietnam Transportation Co vs. HNX 30
Performance |
| Timeline |
PetroVietnam Transportation and HNX 30 Volatility Contrast
Predicted Return Density |
| Returns |
PetroVietnam Transportation Corp
Pair trading matchups for PetroVietnam Transportation
HNX 30
Pair trading matchups for HNX 30
Pair Trading with PetroVietnam Transportation and HNX 30
The main advantage of trading using opposite PetroVietnam Transportation and HNX 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroVietnam Transportation position performs unexpectedly, HNX 30 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 HNX 30 will offset losses from the drop in HNX 30's long position.The idea behind PetroVietnam Transportation Corp and HNX 30 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| HNX 30 vs. Asia Pacific Investment | HNX 30 vs. PetroVietnam Transportation Corp | HNX 30 vs. TDG Global Investment | HNX 30 vs. Everland 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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