Correlation Between FIT INVEST and Mekong Fisheries
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Mekong Fisheries 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 Mekong Fisheries 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 Mekong Fisheries JSC, you can compare the effects of market volatilities on FIT INVEST and Mekong Fisheries 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 Mekong Fisheries. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Mekong Fisheries.
Diversification Opportunities for FIT INVEST and Mekong Fisheries
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FIT and Mekong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Mekong Fisheries JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mekong Fisheries JSC 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 Mekong Fisheries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mekong Fisheries JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Mekong Fisheries go up and down completely randomly.
Pair Corralation between FIT INVEST and Mekong Fisheries
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Mekong Fisheries. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 2.26 times less risky than Mekong Fisheries. The stock trades about -0.12 of its potential returns per unit of risk. The Mekong Fisheries JSC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 701,000 in Mekong Fisheries JSC on August 27, 2024 and sell it today you would lose (1,000.00) from holding Mekong Fisheries JSC or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Mekong Fisheries JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Mekong Fisheries JSC |
FIT INVEST and Mekong Fisheries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Mekong Fisheries
The main advantage of trading using opposite FIT INVEST and Mekong Fisheries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Mekong Fisheries 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 Mekong Fisheries will offset losses from the drop in Mekong Fisheries' 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 |
| Mekong Fisheries vs. FIT INVEST JSC | Mekong Fisheries vs. Damsan JSC | Mekong Fisheries vs. An Phat Plastic | Mekong Fisheries vs. APG Securities Joint |
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.
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