Correlation Between Vietnam Petroleum and Binh Duong
Can any of the company-specific risk be diversified away by investing in both Vietnam Petroleum and Binh Duong 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 Binh Duong 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 Binh Duong Trade, you can compare the effects of market volatilities on Vietnam Petroleum and Binh Duong 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 Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Petroleum and Binh Duong.
Diversification Opportunities for Vietnam Petroleum and Binh Duong
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vietnam and Binh is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Petroleum Transport and Binh Duong Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Trade 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 Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Trade has no effect on the direction of Vietnam Petroleum i.e., Vietnam Petroleum and Binh Duong go up and down completely randomly.
Pair Corralation between Vietnam Petroleum and Binh Duong
Assuming the 90 days trading horizon Vietnam Petroleum Transport is expected to generate 1.11 times more return on investment than Binh Duong. However, Vietnam Petroleum is 1.11 times more volatile than Binh Duong Trade. It trades about 0.06 of its potential returns per unit of risk. Binh Duong Trade is currently generating about 0.03 per unit of risk. If you would invest 1,045,960 in Vietnam Petroleum Transport on September 15, 2024 and sell it today you would earn a total of 389,040 from holding Vietnam Petroleum Transport or generate 37.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vietnam Petroleum Transport vs. Binh Duong Trade
Performance |
| Timeline |
| Vietnam Petroleum |
| Binh Duong Trade |
Vietnam Petroleum and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Petroleum and Binh Duong
The main advantage of trading using opposite Vietnam Petroleum and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Petroleum position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| Vietnam Petroleum vs. FIT INVEST JSC | Vietnam Petroleum vs. Damsan JSC | Vietnam Petroleum vs. An Phat Plastic | Vietnam Petroleum vs. Alphanam ME |
| Binh Duong vs. Vietnam Petroleum Transport | Binh Duong vs. Innovative Technology Development | Binh Duong vs. PostTelecommunication Equipment | Binh Duong vs. Global Electrical Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |