Correlation Between Fecon Mining and Investment
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Investment 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 Fecon Mining and Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fecon Mining JSC and Investment and Industrial, you can compare the effects of market volatilities on Fecon Mining and Investment 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 Fecon Mining with a short position of Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Investment.
Diversification Opportunities for Fecon Mining and Investment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fecon and Investment is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Investment and Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment and Industrial and Fecon Mining 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 Fecon Mining JSC are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment and Industrial has no effect on the direction of Fecon Mining i.e., Fecon Mining and Investment go up and down completely randomly.
Pair Corralation between Fecon Mining and Investment
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the Investment. In addition to that, Fecon Mining is 1.27 times more volatile than Investment and Industrial. It trades about -0.02 of its total potential returns per unit of risk. Investment and Industrial is currently generating about -0.01 per unit of volatility. If you would invest 8,160,913 in Investment and Industrial on October 26, 2024 and sell it today you would lose (1,230,913) from holding Investment and Industrial or give up 15.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. Investment and Industrial
Performance |
| Timeline |
| Fecon Mining JSC |
| Investment and Industrial |
Fecon Mining and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Investment
The main advantage of trading using opposite Fecon Mining and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Fecon Mining vs. Truong Thanh Furniture | Fecon Mining vs. Bao Ngoc Investment | Fecon Mining vs. Elcom Technology Communications | Fecon Mining vs. Duong Hieu Trading |
| Investment vs. Vietnam Dairy Products | Investment vs. Pha Lai Thermal | Investment vs. Long An Food | Investment vs. Viettel Construction JSC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |