Correlation Between Transimex Transportation and Vietnam Petroleum
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and Vietnam Petroleum 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 Transimex Transportation and Vietnam Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and Vietnam Petroleum Transport, you can compare the effects of market volatilities on Transimex Transportation and Vietnam Petroleum 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 Transimex Transportation with a short position of Vietnam Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and Vietnam Petroleum.
Diversification Opportunities for Transimex Transportation and Vietnam Petroleum
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transimex and Vietnam is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and Vietnam Petroleum Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Petroleum and Transimex 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 Transimex Transportation JSC are associated (or correlated) with Vietnam Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Petroleum has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and Vietnam Petroleum go up and down completely randomly.
Pair Corralation between Transimex Transportation and Vietnam Petroleum
Assuming the 90 days trading horizon Transimex Transportation JSC is expected to under-perform the Vietnam Petroleum. But the stock apears to be less risky and, when comparing its historical volatility, Transimex Transportation JSC is 1.23 times less risky than Vietnam Petroleum. The stock trades about -0.16 of its potential returns per unit of risk. The Vietnam Petroleum Transport is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,440,000 in Vietnam Petroleum Transport on September 12, 2024 and sell it today you would lose (35,000) from holding Vietnam Petroleum Transport or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 69.57% |
| Values | Daily Returns |
Transimex Transportation JSC vs. Vietnam Petroleum Transport
Performance |
| Timeline |
| Transimex Transportation |
| Vietnam Petroleum |
Transimex Transportation and Vietnam Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and Vietnam Petroleum
The main advantage of trading using opposite Transimex Transportation and Vietnam Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, Vietnam Petroleum 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 Vietnam Petroleum will offset losses from the drop in Vietnam Petroleum's long position.| Transimex Transportation vs. Song Hong Garment | Transimex Transportation vs. Alphanam ME | Transimex Transportation vs. Hochiminh City Metal | Transimex Transportation vs. Atesco Industrial Cartering |
| Vietnam Petroleum vs. FIT INVEST JSC | Vietnam Petroleum vs. Damsan JSC | Vietnam Petroleum vs. An Phat Plastic | Vietnam Petroleum vs. Alphanam ME |
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.
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