Correlation Between An Gia and Petrolimex Information

Can any of the company-specific risk be diversified away by investing in both An Gia 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 An Gia and Petrolimex Information into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between An Gia Real and Petrolimex Information Technology, you can compare the effects of market volatilities on An Gia 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 An Gia with a short position of Petrolimex Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Gia and Petrolimex Information.

Diversification Opportunities for An Gia and Petrolimex Information

0.0

Correlation Coefficient

An Gia  Petrolimex Information

Pay attention - limited upside

The 3 months correlation between AGG and Petrolimex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding An Gia Real and Petrolimex Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrolimex Information and An Gia 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 An Gia Real 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 An Gia i.e., An Gia and Petrolimex Information go up and down completely randomly.

Pair Corralation between An Gia and Petrolimex Information

If you would invest  2,175,809  in Petrolimex Information Technology on December 3, 2024 and sell it today you would earn a total of  774,191  from holding Petrolimex Information Technology or generate 35.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.37%
Values	Daily Returns

An Gia Real  vs.  Petrolimex Information Technol

An Gia Real

Risk-Adjusted Performance

Very Weak

Over the last 90 days An Gia Real has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, An Gia is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Petrolimex Information

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Petrolimex Information Technology are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Petrolimex Information displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with An Gia and Petrolimex Information

The main advantage of trading using opposite An Gia and Petrolimex Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Gia 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.

The idea behind An Gia Real and Petrolimex Information Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.