Correlation Between Duong Hieu and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Duong Hieu 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 Duong Hieu and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duong Hieu Trading and FIT INVEST JSC, you can compare the effects of market volatilities on Duong Hieu 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 Duong Hieu with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duong Hieu and FIT INVEST.
Diversification Opportunities for Duong Hieu and FIT INVEST
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Duong and FIT is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Duong Hieu Trading 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 Duong Hieu 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 Duong Hieu Trading 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 Duong Hieu i.e., Duong Hieu and FIT INVEST go up and down completely randomly.
Pair Corralation between Duong Hieu and FIT INVEST
Assuming the 90 days trading horizon Duong Hieu Trading is expected to under-perform the FIT INVEST. In addition to that, Duong Hieu is 1.12 times more volatile than FIT INVEST JSC. It trades about -0.03 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.01 per unit of volatility. If you would invest 410,000 in FIT INVEST JSC on December 23, 2024 and sell it today you would earn a total of 16,000 from holding FIT INVEST JSC or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duong Hieu Trading vs. FIT INVEST JSC
Performance |
| Timeline |
| Duong Hieu Trading |
| FIT INVEST JSC |
Duong Hieu and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duong Hieu and FIT INVEST
The main advantage of trading using opposite Duong Hieu and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duong Hieu 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.| Duong Hieu vs. Vietnam Petroleum Transport | Duong Hieu vs. Transimex Transportation JSC | Duong Hieu vs. PetroVietnam Transportation Corp | Duong Hieu vs. Taseco Air Services |
| FIT INVEST vs. Fecon Mining JSC | FIT INVEST vs. Hochiminh City Metal | FIT INVEST vs. Innovative Technology Development | FIT INVEST vs. Investment and Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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