Correlation Between FIT INVEST and An Phat
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and An Phat 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 FIT INVEST and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIT INVEST JSC and An Phat Plastic, you can compare the effects of market volatilities on FIT INVEST and An Phat 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 FIT INVEST with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and An Phat.
Diversification Opportunities for FIT INVEST and An Phat
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIT and AAA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and An Phat Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Plastic and FIT INVEST 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 FIT INVEST JSC are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Plastic has no effect on the direction of FIT INVEST i.e., FIT INVEST and An Phat go up and down completely randomly.
Pair Corralation between FIT INVEST and An Phat
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.67 times more return on investment than An Phat. However, FIT INVEST JSC is 1.5 times less risky than An Phat. It trades about -0.12 of its potential returns per unit of risk. An Phat Plastic is currently generating about -0.1 per unit of risk. If you would invest 430,000 in FIT INVEST JSC on August 27, 2024 and sell it today you would lose (14,000) from holding FIT INVEST JSC or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. An Phat Plastic
Performance |
| Timeline |
| FIT INVEST JSC |
| An Phat Plastic |
FIT INVEST and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and An Phat
The main advantage of trading using opposite FIT INVEST and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| FIT INVEST vs. Hanoi Plastics JSC | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pacific Petroleum Transportation |
| An Phat vs. Vu Dang Investment | An Phat vs. Thanh Dat Investment | An Phat vs. HVC Investment and | An Phat vs. Dinhvu Port Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |