Correlation Between Binh Minh and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Binh Minh 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 Binh Minh and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Minh Plastics and FIT INVEST JSC, you can compare the effects of market volatilities on Binh Minh 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 Binh Minh with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Minh and FIT INVEST.
Diversification Opportunities for Binh Minh and FIT INVEST
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binh and FIT is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Binh Minh Plastics 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 Binh Minh 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 Binh Minh Plastics 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 Binh Minh i.e., Binh Minh and FIT INVEST go up and down completely randomly.
Pair Corralation between Binh Minh and FIT INVEST
Assuming the 90 days trading horizon Binh Minh Plastics is expected to under-perform the FIT INVEST. In addition to that, Binh Minh is 2.44 times more volatile than FIT INVEST JSC. It trades about -0.13 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.28 per unit of volatility. If you would invest 421,000 in FIT INVEST JSC on October 29, 2024 and sell it today you would lose (16,000) from holding FIT INVEST JSC or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Minh Plastics vs. FIT INVEST JSC
Performance |
| Timeline |
| Binh Minh Plastics |
| FIT INVEST JSC |
Binh Minh and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Minh and FIT INVEST
The main advantage of trading using opposite Binh Minh and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Minh 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.| Binh Minh vs. Nafoods Group JSC | Binh Minh vs. Ba Ria Thermal | Binh Minh vs. Hochiminh City Metal | Binh Minh vs. Elcom Technology Communications |
| FIT INVEST vs. Techno Agricultural Supplying | FIT INVEST vs. Visicons Construction and | FIT INVEST vs. Industrial Urban Development | FIT INVEST vs. Transport and Industry |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |