Correlation Between Alphanam and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Alphanam 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 Alphanam and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and FIT INVEST JSC, you can compare the effects of market volatilities on Alphanam 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 Alphanam with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and FIT INVEST.
Diversification Opportunities for Alphanam and FIT INVEST
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alphanam and FIT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME 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 Alphanam 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 Alphanam ME 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 Alphanam i.e., Alphanam and FIT INVEST go up and down completely randomly.
Pair Corralation between Alphanam and FIT INVEST
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the FIT INVEST. In addition to that, Alphanam is 1.83 times more volatile than FIT INVEST JSC. It trades about -0.08 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.12 per unit of volatility. If you would invest 430,000 in FIT INVEST JSC on August 27, 2024 and sell it today you would lose (14,000) from holding FIT INVEST JSC or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Alphanam ME vs. FIT INVEST JSC
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FIT INVEST JSC |
Alphanam and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and FIT INVEST
The main advantage of trading using opposite Alphanam and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam 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.| Alphanam vs. FIT INVEST JSC | Alphanam vs. Damsan JSC | Alphanam vs. An Phat Plastic | Alphanam vs. APG Securities Joint |
| FIT INVEST vs. Hanoi Plastics JSC | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pacific Petroleum Transportation |
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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