Correlation Between Tri Viet and Petrolimex Insurance
Can any of the company-specific risk be diversified away by investing in both Tri Viet and Petrolimex Insurance 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 Tri Viet and Petrolimex Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and Petrolimex Insurance Corp, you can compare the effects of market volatilities on Tri Viet and Petrolimex Insurance 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 Tri Viet with a short position of Petrolimex Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and Petrolimex Insurance.
Diversification Opportunities for Tri Viet and Petrolimex Insurance
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tri and Petrolimex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management and Petrolimex Insurance Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex Insurance Corp and Tri Viet 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 Tri Viet Management are associated (or correlated) with Petrolimex Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrolimex Insurance Corp has no effect on the direction of Tri Viet i.e., Tri Viet and Petrolimex Insurance go up and down completely randomly.
Pair Corralation between Tri Viet and Petrolimex Insurance
Assuming the 90 days trading horizon Tri Viet Management is expected to generate 1.21 times more return on investment than Petrolimex Insurance. However, Tri Viet is 1.21 times more volatile than Petrolimex Insurance Corp. It trades about 0.04 of its potential returns per unit of risk. Petrolimex Insurance Corp is currently generating about 0.01 per unit of risk. If you would invest 920,000 in Tri Viet Management on September 3, 2024 and sell it today you would earn a total of 80,000 from holding Tri Viet Management or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.14% |
| Values | Daily Returns |
Tri Viet Management vs. Petrolimex Insurance Corp
Performance |
| Timeline |
| Tri Viet Management |
| Petrolimex Insurance Corp |
Tri Viet and Petrolimex Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Viet and Petrolimex Insurance
The main advantage of trading using opposite Tri Viet and Petrolimex Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet position performs unexpectedly, Petrolimex Insurance 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 Insurance will offset losses from the drop in Petrolimex Insurance's long position.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
| Petrolimex Insurance vs. FIT INVEST JSC | Petrolimex Insurance vs. Damsan JSC | Petrolimex Insurance vs. An Phat Plastic | Petrolimex Insurance 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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