Correlation Between Fecon Mining and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Vietnam Technological 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 Vietnam Technological 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 Vietnam Technological And, you can compare the effects of market volatilities on Fecon Mining and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Vietnam Technological.
Diversification Opportunities for Fecon Mining and Vietnam Technological
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fecon and Vietnam is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of Fecon Mining i.e., Fecon Mining and Vietnam Technological go up and down completely randomly.
Pair Corralation between Fecon Mining and Vietnam Technological
Assuming the 90 days trading horizon Fecon Mining JSC is expected to generate 2.64 times more return on investment than Vietnam Technological. However, Fecon Mining is 2.64 times more volatile than Vietnam Technological And. It trades about 0.05 of its potential returns per unit of risk. Vietnam Technological And is currently generating about -0.09 per unit of risk. If you would invest 311,000 in Fecon Mining JSC on October 17, 2024 and sell it today you would earn a total of 8,000 from holding Fecon Mining JSC or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fecon Mining JSC vs. Vietnam Technological And
Performance |
| Timeline |
| Fecon Mining JSC |
| Vietnam Technological And |
Fecon Mining and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Vietnam Technological
The main advantage of trading using opposite Fecon Mining and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological's long position.| Fecon Mining vs. IDJ FINANCIAL | Fecon Mining vs. South Basic Chemicals | Fecon Mining vs. VietinBank Securities JSC | Fecon Mining vs. Nafoods Group JSC |
| Vietnam Technological vs. Nafoods Group JSC | Vietnam Technological vs. TDT Investment and | Vietnam Technological vs. Fecon Mining JSC | Vietnam Technological vs. PV2 Investment 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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