Correlation Between PVI Reinsurance and An Phat
Can any of the company-specific risk be diversified away by investing in both PVI Reinsurance and An Phat 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 PVI Reinsurance and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PVI Reinsurance Corp and An Phat Plastic, you can compare the effects of market volatilities on PVI Reinsurance and An Phat 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 PVI Reinsurance with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of PVI Reinsurance and An Phat.
Diversification Opportunities for PVI Reinsurance and An Phat
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PVI and AAA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PVI Reinsurance Corp and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and PVI Reinsurance 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 PVI Reinsurance Corp are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of PVI Reinsurance i.e., PVI Reinsurance and An Phat go up and down completely randomly.
Pair Corralation between PVI Reinsurance and An Phat
Assuming the 90 days trading horizon PVI Reinsurance is expected to generate 1.28 times less return on investment than An Phat. In addition to that, PVI Reinsurance is 1.32 times more volatile than An Phat Plastic. It trades about 0.02 of its total potential returns per unit of risk. An Phat Plastic is currently generating about 0.03 per unit of volatility. If you would invest 712,000 in An Phat Plastic on October 4, 2024 and sell it today you would earn a total of 160,000 from holding An Phat Plastic or generate 22.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 78.05% |
Values | Daily Returns |
PVI Reinsurance Corp vs. An Phat Plastic
Performance |
Timeline |
PVI Reinsurance Corp |
An Phat Plastic |
PVI Reinsurance and An Phat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PVI Reinsurance and An Phat
The main advantage of trading using opposite PVI Reinsurance and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PVI Reinsurance position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.PVI Reinsurance vs. FIT INVEST JSC | PVI Reinsurance vs. Damsan JSC | PVI Reinsurance vs. An Phat Plastic | PVI Reinsurance vs. APG Securities Joint |
An Phat vs. FIT INVEST JSC | An Phat vs. Damsan JSC | An Phat vs. APG Securities Joint | An Phat vs. Binhthuan Agriculture Services |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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