Correlation Between Vietnam Medicinal and FPT CAPITAL
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By analyzing existing cross correlation between Vietnam Medicinal Materials and FPT CAPITAL VNX50, you can compare the effects of market volatilities on Vietnam Medicinal and FPT CAPITAL 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 Vietnam Medicinal with a short position of FPT CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Medicinal and FPT CAPITAL.
Diversification Opportunities for Vietnam Medicinal and FPT CAPITAL
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vietnam and FPT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Medicinal Materials and FPT CAPITAL VNX50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT CAPITAL VNX50 and Vietnam Medicinal 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 Vietnam Medicinal Materials are associated (or correlated) with FPT CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT CAPITAL VNX50 has no effect on the direction of Vietnam Medicinal i.e., Vietnam Medicinal and FPT CAPITAL go up and down completely randomly.
Pair Corralation between Vietnam Medicinal and FPT CAPITAL
Assuming the 90 days trading horizon Vietnam Medicinal Materials is expected to under-perform the FPT CAPITAL. But the stock apears to be less risky and, when comparing its historical volatility, Vietnam Medicinal Materials is 1.08 times less risky than FPT CAPITAL. The stock trades about -0.03 of its potential returns per unit of risk. The FPT CAPITAL VNX50 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,169,000 in FPT CAPITAL VNX50 on September 14, 2024 and sell it today you would lose (43,000) from holding FPT CAPITAL VNX50 or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.95% |
| Values | Daily Returns |
Vietnam Medicinal Materials vs. FPT CAPITAL VNX50
Performance |
| Timeline |
| Vietnam Medicinal |
| FPT CAPITAL VNX50 |
Vietnam Medicinal and FPT CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Medicinal and FPT CAPITAL
The main advantage of trading using opposite Vietnam Medicinal and FPT CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Medicinal position performs unexpectedly, FPT CAPITAL 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 CAPITAL will offset losses from the drop in FPT CAPITAL's long position.| Vietnam Medicinal vs. Song Hong Garment | Vietnam Medicinal vs. Alphanam ME | Vietnam Medicinal vs. Hochiminh City Metal | Vietnam Medicinal vs. Atesco Industrial Cartering |
| FPT CAPITAL vs. Idico JSC | FPT CAPITAL vs. Song Hong Garment | FPT CAPITAL vs. Vietnam Medicinal Materials | FPT CAPITAL 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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