Correlation Between Hanoi Beer and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Hanoi Beer 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 Hanoi Beer and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanoi Beer Alcohol and FIT INVEST JSC, you can compare the effects of market volatilities on Hanoi Beer 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 Hanoi Beer with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanoi Beer and FIT INVEST.
Diversification Opportunities for Hanoi Beer and FIT INVEST
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanoi and FIT is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hanoi Beer Alcohol 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 Hanoi Beer 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 Hanoi Beer Alcohol 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 Hanoi Beer i.e., Hanoi Beer and FIT INVEST go up and down completely randomly.
Pair Corralation between Hanoi Beer and FIT INVEST
Assuming the 90 days trading horizon Hanoi Beer Alcohol is expected to generate 3.04 times more return on investment than FIT INVEST. However, Hanoi Beer is 3.04 times more volatile than FIT INVEST JSC. It trades about -0.03 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.11 per unit of risk. If you would invest 3,800,000 in Hanoi Beer Alcohol on October 26, 2024 and sell it today you would lose (100,000) from holding Hanoi Beer Alcohol or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.74% |
| Values | Daily Returns |
Hanoi Beer Alcohol vs. FIT INVEST JSC
Performance |
| Timeline |
| Hanoi Beer Alcohol |
| FIT INVEST JSC |
Hanoi Beer and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanoi Beer and FIT INVEST
The main advantage of trading using opposite Hanoi Beer and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanoi Beer 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.| Hanoi Beer vs. FIT INVEST JSC | Hanoi Beer vs. Damsan JSC | Hanoi Beer vs. An Phat Plastic | Hanoi Beer vs. APG Securities Joint |
| FIT INVEST vs. Binh Duong Trade | FIT INVEST vs. FPT Digital Retail | FIT INVEST vs. BIDV Insurance Corp | FIT INVEST vs. Vietnam Dairy Products |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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