Correlation Between Fecon Mining and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and 1369 Construction 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 1369 Construction 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 1369 Construction JSC, you can compare the effects of market volatilities on Fecon Mining and 1369 Construction 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 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and 1369 Construction.
Diversification Opportunities for Fecon Mining and 1369 Construction
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fecon and 1369 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC 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 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of Fecon Mining i.e., Fecon Mining and 1369 Construction go up and down completely randomly.
Pair Corralation between Fecon Mining and 1369 Construction
Assuming the 90 days trading horizon Fecon Mining JSC is expected to generate 2.05 times more return on investment than 1369 Construction. However, Fecon Mining is 2.05 times more volatile than 1369 Construction JSC. It trades about 0.03 of its potential returns per unit of risk. 1369 Construction JSC is currently generating about -0.29 per unit of risk. If you would invest 326,000 in Fecon Mining JSC on October 26, 2024 and sell it today you would earn a total of 3,000 from holding Fecon Mining JSC or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. 1369 Construction JSC
Performance |
| Timeline |
| Fecon Mining JSC |
| 1369 Construction JSC |
Fecon Mining and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and 1369 Construction
The main advantage of trading using opposite Fecon Mining and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| Fecon Mining vs. Hanoi Plastics JSC | Fecon Mining vs. Century Synthetic Fiber | Fecon Mining vs. Tay Ninh Rubber | Fecon Mining vs. Elcom Technology Communications |
| 1369 Construction vs. FIT INVEST JSC | 1369 Construction vs. Damsan JSC | 1369 Construction vs. An Phat Plastic | 1369 Construction vs. APG Securities Joint |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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