Correlation Between Alphanam and FPT Digital
Can any of the company-specific risk be diversified away by investing in both Alphanam and FPT Digital 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 FPT Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and FPT Digital Retail, you can compare the effects of market volatilities on Alphanam and FPT Digital 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 FPT Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and FPT Digital.
Diversification Opportunities for Alphanam and FPT Digital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alphanam and FPT is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and FPT Digital Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Digital Retail 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 FPT Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Digital Retail has no effect on the direction of Alphanam i.e., Alphanam and FPT Digital go up and down completely randomly.
Pair Corralation between Alphanam and FPT Digital
Assuming the 90 days trading horizon Alphanam is expected to generate 11.81 times less return on investment than FPT Digital. In addition to that, Alphanam is 2.34 times more volatile than FPT Digital Retail. It trades about 0.01 of its total potential returns per unit of risk. FPT Digital Retail is currently generating about 0.39 per unit of volatility. If you would invest 18,380,000 in FPT Digital Retail on October 28, 2024 and sell it today you would earn a total of 2,220,000 from holding FPT Digital Retail or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Alphanam ME vs. FPT Digital Retail
Performance |
| Timeline |
| Alphanam ME |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FPT Digital Retail |
Alphanam and FPT Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and FPT Digital
The main advantage of trading using opposite Alphanam and FPT Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, FPT Digital 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 FPT Digital will offset losses from the drop in FPT Digital's long position.| Alphanam vs. VTC Telecommunications JSC | Alphanam vs. Binh Minh Plastics | Alphanam vs. An Phat Plastic | Alphanam vs. Transimex Transportation JSC |
| FPT Digital vs. TDT Investment and | FPT Digital vs. AgriBank Securities JSC | FPT Digital vs. Petrolimex International Trading | FPT Digital vs. Military Insurance Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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