Correlation Between Fecon Mining and VN Index
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and VN Index 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 VN Index 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 VN Index, you can compare the effects of market volatilities on Fecon Mining and VN Index 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 VN Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and VN Index.
Diversification Opportunities for Fecon Mining and VN Index
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fecon and VNI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and VN Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VN Index 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 VN Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VN Index has no effect on the direction of Fecon Mining i.e., Fecon Mining and VN Index go up and down completely randomly.
Pair Corralation between Fecon Mining and VN Index
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the VN Index. In addition to that, Fecon Mining is 2.22 times more volatile than VN Index. It trades about -0.18 of its total potential returns per unit of risk. VN Index is currently generating about 0.04 per unit of volatility. If you would invest 124,471 in VN Index on September 4, 2024 and sell it today you would earn a total of 611.00 from holding VN Index or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fecon Mining JSC vs. VN Index
Performance |
| Timeline |
Fecon Mining and VN Index Volatility Contrast
Predicted Return Density |
| Returns |
Fecon Mining JSC
Pair trading matchups for Fecon Mining
VN Index
Pair trading matchups for VN Index
Pair Trading with Fecon Mining and VN Index
The main advantage of trading using opposite Fecon Mining and VN Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, VN Index 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 VN Index will offset losses from the drop in VN Index's long position.| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
| VN Index vs. Fecon Mining JSC | VN Index vs. Elcom Technology Communications | VN Index vs. Pacific Petroleum Transportation | VN Index vs. Transport and Industry |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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