Correlation Between Vietnam Petroleum and Camimex Group
Can any of the company-specific risk be diversified away by investing in both Vietnam Petroleum and Camimex Group 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 Vietnam Petroleum and Camimex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Petroleum Transport and Camimex Group JSC, you can compare the effects of market volatilities on Vietnam Petroleum and Camimex Group 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 Vietnam Petroleum with a short position of Camimex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Petroleum and Camimex Group.
Diversification Opportunities for Vietnam Petroleum and Camimex Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vietnam and Camimex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Petroleum Transport and Camimex Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camimex Group JSC and Vietnam Petroleum 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 Vietnam Petroleum Transport are associated (or correlated) with Camimex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camimex Group JSC has no effect on the direction of Vietnam Petroleum i.e., Vietnam Petroleum and Camimex Group go up and down completely randomly.
Pair Corralation between Vietnam Petroleum and Camimex Group
Assuming the 90 days trading horizon Vietnam Petroleum Transport is expected to generate 1.89 times more return on investment than Camimex Group. However, Vietnam Petroleum is 1.89 times more volatile than Camimex Group JSC. It trades about 0.22 of its potential returns per unit of risk. Camimex Group JSC is currently generating about 0.03 per unit of risk. If you would invest 1,280,000 in Vietnam Petroleum Transport on September 2, 2024 and sell it today you would earn a total of 140,000 from holding Vietnam Petroleum Transport or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Petroleum Transport vs. Camimex Group JSC
Performance |
| Timeline |
| Vietnam Petroleum |
| Camimex Group JSC |
Vietnam Petroleum and Camimex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Petroleum and Camimex Group
The main advantage of trading using opposite Vietnam Petroleum and Camimex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Petroleum position performs unexpectedly, Camimex Group 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 Camimex Group will offset losses from the drop in Camimex Group's long position.| Vietnam Petroleum vs. Everland Investment JSC | Vietnam Petroleum vs. Tin Nghia Industrial | Vietnam Petroleum vs. PV2 Investment JSC | Vietnam Petroleum vs. Vien Dong Investment |
| Camimex Group vs. Development Investment Construction | Camimex Group vs. Vietnam Petroleum Transport | Camimex Group vs. PetroVietnam Transportation Corp | Camimex Group vs. FPT Digital Retail |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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