Correlation Between Fecon Mining and Vincom Retail
Can any of the company-specific risk be diversified away by investing in both Fecon Mining and Vincom Retail 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 Vincom Retail 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 Vincom Retail JSC, you can compare the effects of market volatilities on Fecon Mining and Vincom Retail 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 Vincom Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fecon Mining and Vincom Retail.
Diversification Opportunities for Fecon Mining and Vincom Retail
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fecon and Vincom is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fecon Mining JSC and Vincom Retail JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vincom Retail 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 Vincom Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vincom Retail JSC has no effect on the direction of Fecon Mining i.e., Fecon Mining and Vincom Retail go up and down completely randomly.
Pair Corralation between Fecon Mining and Vincom Retail
Assuming the 90 days trading horizon Fecon Mining JSC is expected to under-perform the Vincom Retail. But the stock apears to be less risky and, when comparing its historical volatility, Fecon Mining JSC is 1.41 times less risky than Vincom Retail. The stock trades about -0.12 of its potential returns per unit of risk. The Vincom Retail JSC is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,335,000 in Vincom Retail JSC on September 3, 2024 and sell it today you would lose (550,000) from holding Vincom Retail JSC or give up 23.55% 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. Vincom Retail JSC
Performance |
| Timeline |
| Fecon Mining JSC |
| Vincom Retail JSC |
Fecon Mining and Vincom Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fecon Mining and Vincom Retail
The main advantage of trading using opposite Fecon Mining and Vincom Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fecon Mining position performs unexpectedly, Vincom Retail 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 Vincom Retail will offset losses from the drop in Vincom Retail'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 |
| Vincom Retail vs. Nafoods Group JSC | Vincom Retail vs. Bao Ngoc Investment | Vincom Retail vs. Long An Food | Vincom Retail vs. Investment and Industrial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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