Correlation Between Industrial Urban and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Industrial Urban and Fecon Mining 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 Industrial Urban and Fecon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Urban Development and Fecon Mining JSC, you can compare the effects of market volatilities on Industrial Urban and Fecon Mining 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 Industrial Urban with a short position of Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Urban and Fecon Mining.
Diversification Opportunities for Industrial Urban and Fecon Mining
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Fecon is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Urban Development and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining JSC and Industrial Urban 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 Industrial Urban Development are associated (or correlated) with Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Industrial Urban i.e., Industrial Urban and Fecon Mining go up and down completely randomly.
Pair Corralation between Industrial Urban and Fecon Mining
Assuming the 90 days trading horizon Industrial Urban Development is expected to generate 0.92 times more return on investment than Fecon Mining. However, Industrial Urban Development is 1.09 times less risky than Fecon Mining. It trades about 0.01 of its potential returns per unit of risk. Fecon Mining JSC is currently generating about -0.23 per unit of risk. If you would invest 3,200,000 in Industrial Urban Development on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Industrial Urban Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Urban Development vs. Fecon Mining JSC
Performance |
| Timeline |
| Industrial Urban Dev |
| Fecon Mining JSC |
Industrial Urban and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Urban and Fecon Mining
The main advantage of trading using opposite Industrial Urban and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Urban position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| Industrial Urban vs. PetroVietnam Transportation Corp | Industrial Urban vs. Petrovietnam Drilling Mud | Industrial Urban vs. Vietnam Petroleum Transport | Industrial Urban vs. Hochiminh City Metal |
| Fecon Mining vs. Ha Long Investment | Fecon Mining vs. Everland Investment JSC | Fecon Mining vs. Hochiminh City Metal | Fecon Mining vs. Vu Dang Investment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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