Correlation Between FIT INVEST and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Asia Pacific 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 Pacific 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 Pacific Investment, you can compare the effects of market volatilities on FIT INVEST and Asia Pacific 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 Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Asia Pacific.
Diversification Opportunities for FIT INVEST and Asia Pacific
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FIT and Asia is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Asia Pacific Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investment 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 Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investment has no effect on the direction of FIT INVEST i.e., FIT INVEST and Asia Pacific go up and down completely randomly.
Pair Corralation between FIT INVEST and Asia Pacific
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.4 times more return on investment than Asia Pacific. However, FIT INVEST JSC is 2.49 times less risky than Asia Pacific. It trades about -0.16 of its potential returns per unit of risk. Asia Pacific Investment is currently generating about -0.16 per unit of risk. If you would invest 447,000 in FIT INVEST JSC on August 25, 2024 and sell it today you would lose (32,000) from holding FIT INVEST JSC or give up 7.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
FIT INVEST JSC vs. Asia Pacific Investment
Performance |
| Timeline |
| FIT INVEST JSC |
| Asia Pacific Investment |
FIT INVEST and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Asia Pacific
The main advantage of trading using opposite FIT INVEST and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Asia Pacific 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 Pacific will offset losses from the drop in Asia Pacific's long position.| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
| Asia Pacific vs. FIT INVEST JSC | Asia Pacific vs. Damsan JSC | Asia Pacific vs. An Phat Plastic | Asia Pacific 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |