Correlation Between FIT INVEST and Asia Commercial
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Asia Commercial 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 Asia Commercial 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 Asia Commercial Bank, you can compare the effects of market volatilities on FIT INVEST and Asia Commercial 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 Asia Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Asia Commercial.
Diversification Opportunities for FIT INVEST and Asia Commercial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIT and Asia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Asia Commercial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Commercial Bank 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 Asia Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Commercial Bank has no effect on the direction of FIT INVEST i.e., FIT INVEST and Asia Commercial go up and down completely randomly.
Pair Corralation between FIT INVEST and Asia Commercial
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Asia Commercial. In addition to that, FIT INVEST is 1.13 times more volatile than Asia Commercial Bank. It trades about -0.04 of its total potential returns per unit of risk. Asia Commercial Bank is currently generating about 0.06 per unit of volatility. If you would invest 1,804,791 in Asia Commercial Bank on August 31, 2024 and sell it today you would earn a total of 715,209 from holding Asia Commercial Bank or generate 39.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Asia Commercial Bank
Performance |
| Timeline |
| FIT INVEST JSC |
| Asia Commercial Bank |
FIT INVEST and Asia Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Asia Commercial
The main advantage of trading using opposite FIT INVEST and Asia Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Asia Commercial 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 Asia Commercial will offset losses from the drop in Asia Commercial's long position.| FIT INVEST vs. Plastic Additives JSC | FIT INVEST vs. Picomat Plastic JSC | FIT INVEST vs. Hanoi Beer Alcohol | FIT INVEST vs. Military Insurance Corp |
| Asia Commercial vs. FIT INVEST JSC | Asia Commercial vs. Damsan JSC | Asia Commercial vs. An Phat Plastic | Asia Commercial vs. Alphanam ME |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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