Correlation Between Cuulong Fish and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Cuulong Fish and FIT INVEST 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 Cuulong Fish and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuulong Fish JSC and FIT INVEST JSC, you can compare the effects of market volatilities on Cuulong Fish and FIT INVEST 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 Cuulong Fish with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuulong Fish and FIT INVEST.
Diversification Opportunities for Cuulong Fish and FIT INVEST
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cuulong and FIT is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cuulong Fish JSC and FIT INVEST JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT INVEST JSC and Cuulong Fish 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 Cuulong Fish JSC are associated (or correlated) with FIT INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT INVEST JSC has no effect on the direction of Cuulong Fish i.e., Cuulong Fish and FIT INVEST go up and down completely randomly.
Pair Corralation between Cuulong Fish and FIT INVEST
Assuming the 90 days trading horizon Cuulong Fish JSC is expected to generate 0.89 times more return on investment than FIT INVEST. However, Cuulong Fish JSC is 1.13 times less risky than FIT INVEST. It trades about -0.08 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.1 per unit of risk. If you would invest 1,190,000 in Cuulong Fish JSC on August 29, 2024 and sell it today you would lose (25,000) from holding Cuulong Fish JSC or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuulong Fish JSC vs. FIT INVEST JSC
Performance |
| Timeline |
| Cuulong Fish JSC |
| FIT INVEST JSC |
Cuulong Fish and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuulong Fish and FIT INVEST
The main advantage of trading using opposite Cuulong Fish and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuulong Fish position performs unexpectedly, FIT INVEST 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 FIT INVEST will offset losses from the drop in FIT INVEST's long position.| Cuulong Fish vs. FIT INVEST JSC | Cuulong Fish vs. Damsan JSC | Cuulong Fish vs. An Phat Plastic | Cuulong Fish vs. Alphanam ME |
| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. Alphanam ME | FIT INVEST vs. APG Securities Joint |
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 Stocks Directory module to find actively traded stocks across global markets.
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