Correlation Between Foreign Trade and Ipa Investments
Can any of the company-specific risk be diversified away by investing in both Foreign Trade and Ipa Investments 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 Foreign Trade and Ipa Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foreign Trade Development and Ipa Investments Group, you can compare the effects of market volatilities on Foreign Trade and Ipa Investments 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 Foreign Trade with a short position of Ipa Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Ipa Investments.
Diversification Opportunities for Foreign Trade and Ipa Investments
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foreign and Ipa is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Development and Ipa Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipa Investments Group and Foreign Trade 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 Foreign Trade Development are associated (or correlated) with Ipa Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipa Investments Group has no effect on the direction of Foreign Trade i.e., Foreign Trade and Ipa Investments go up and down completely randomly.
Pair Corralation between Foreign Trade and Ipa Investments
Assuming the 90 days trading horizon Foreign Trade Development is expected to generate 3.52 times more return on investment than Ipa Investments. However, Foreign Trade is 3.52 times more volatile than Ipa Investments Group. It trades about 0.11 of its potential returns per unit of risk. Ipa Investments Group is currently generating about -0.09 per unit of risk. If you would invest 1,390,000 in Foreign Trade Development on August 31, 2024 and sell it today you would earn a total of 210,000 from holding Foreign Trade Development or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.23% |
| Values | Daily Returns |
Foreign Trade Development vs. Ipa Investments Group
Performance |
| Timeline |
| Foreign Trade Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Ipa Investments Group |
Foreign Trade and Ipa Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foreign Trade and Ipa Investments
The main advantage of trading using opposite Foreign Trade and Ipa Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade position performs unexpectedly, Ipa Investments 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 Ipa Investments will offset losses from the drop in Ipa Investments' long position.| Foreign Trade vs. Techcom Vietnam REIT | Foreign Trade vs. Din Capital Investment | Foreign Trade vs. Vien Dong Investment | Foreign Trade vs. Thanh Dat Investment |
| Ipa Investments vs. Vietnam Petroleum Transport | Ipa Investments vs. Ducgiang Chemicals Detergent | Ipa Investments vs. Transport and Industry | Ipa Investments vs. Transimex Transportation 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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