Correlation Between Tay Ninh and Petrolimex Information
Can any of the company-specific risk be diversified away by investing in both Tay Ninh and Petrolimex Information 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 Tay Ninh and Petrolimex Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tay Ninh Rubber and Petrolimex Information Technology, you can compare the effects of market volatilities on Tay Ninh and Petrolimex Information 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 Tay Ninh with a short position of Petrolimex Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tay Ninh and Petrolimex Information.
Diversification Opportunities for Tay Ninh and Petrolimex Information
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tay and Petrolimex is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tay Ninh Rubber and Petrolimex Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex Information and Tay Ninh 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 Tay Ninh Rubber are associated (or correlated) with Petrolimex Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrolimex Information has no effect on the direction of Tay Ninh i.e., Tay Ninh and Petrolimex Information go up and down completely randomly.
Pair Corralation between Tay Ninh and Petrolimex Information
Assuming the 90 days trading horizon Tay Ninh Rubber is expected to generate 0.74 times more return on investment than Petrolimex Information. However, Tay Ninh Rubber is 1.35 times less risky than Petrolimex Information. It trades about 0.18 of its potential returns per unit of risk. Petrolimex Information Technology is currently generating about -0.13 per unit of risk. If you would invest 3,910,000 in Tay Ninh Rubber on September 2, 2024 and sell it today you would earn a total of 970,000 from holding Tay Ninh Rubber or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
Tay Ninh Rubber vs. Petrolimex Information Technol
Performance |
| Timeline |
| Tay Ninh Rubber |
| Petrolimex Information |
Tay Ninh and Petrolimex Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tay Ninh and Petrolimex Information
The main advantage of trading using opposite Tay Ninh and Petrolimex Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tay Ninh position performs unexpectedly, Petrolimex Information 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 Petrolimex Information will offset losses from the drop in Petrolimex Information's long position.| Tay Ninh vs. FIT INVEST JSC | Tay Ninh vs. Damsan JSC | Tay Ninh vs. An Phat Plastic | Tay Ninh vs. Alphanam ME |
| Petrolimex Information vs. Song Hong Garment | Petrolimex Information vs. Alphanam ME | Petrolimex Information vs. Hochiminh City Metal | Petrolimex Information vs. Atesco Industrial Cartering |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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