Correlation Between Bich Chi and FPT Digital
Can any of the company-specific risk be diversified away by investing in both Bich Chi 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 Bich Chi and FPT Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bich Chi Food and FPT Digital Retail, you can compare the effects of market volatilities on Bich Chi 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 Bich Chi with a short position of FPT Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bich Chi and FPT Digital.
Diversification Opportunities for Bich Chi and FPT Digital
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bich and FPT is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bich Chi Food 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 Bich Chi 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 Bich Chi Food 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 Bich Chi i.e., Bich Chi and FPT Digital go up and down completely randomly.
Pair Corralation between Bich Chi and FPT Digital
Assuming the 90 days trading horizon Bich Chi Food is expected to generate 4.13 times more return on investment than FPT Digital. However, Bich Chi is 4.13 times more volatile than FPT Digital Retail. It trades about 0.06 of its potential returns per unit of risk. FPT Digital Retail is currently generating about -0.03 per unit of risk. If you would invest 3,740,000 in Bich Chi Food on September 2, 2024 and sell it today you would earn a total of 260,000 from holding Bich Chi Food or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Bich Chi Food vs. FPT Digital Retail
Performance |
| Timeline |
| Bich Chi Food |
| FPT Digital Retail |
Bich Chi and FPT Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bich Chi and FPT Digital
The main advantage of trading using opposite Bich Chi and FPT Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bich Chi 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.| Bich Chi vs. Dong Nai Plastic | Bich Chi vs. Tay Ninh Rubber | Bich Chi vs. Vietnam Rubber Group | Bich Chi vs. Hung Hau Agricultural |
| FPT Digital vs. FIT INVEST JSC | FPT Digital vs. Damsan JSC | FPT Digital vs. An Phat Plastic | FPT Digital vs. Alphanam ME |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |