Correlation Between FIT INVEST and Joint Stock
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Joint Stock 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 Joint Stock 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 Joint Stock Commercial, you can compare the effects of market volatilities on FIT INVEST and Joint Stock 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 Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Joint Stock.
Diversification Opportunities for FIT INVEST and Joint Stock
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIT and Joint is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Joint Stock Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock Commercial 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 Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock Commercial has no effect on the direction of FIT INVEST i.e., FIT INVEST and Joint Stock go up and down completely randomly.
Pair Corralation between FIT INVEST and Joint Stock
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 1.29 times more return on investment than Joint Stock. However, FIT INVEST is 1.29 times more volatile than Joint Stock Commercial. It trades about 0.01 of its potential returns per unit of risk. Joint Stock Commercial is currently generating about 0.01 per unit of risk. If you would invest 420,000 in FIT INVEST JSC on October 16, 2024 and sell it today you would lose (17,000) from holding FIT INVEST JSC or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Joint Stock Commercial
Performance |
| Timeline |
| FIT INVEST JSC |
| Joint Stock Commercial |
FIT INVEST and Joint Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Joint Stock
The main advantage of trading using opposite FIT INVEST and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.| FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pha Le Plastics | FIT INVEST vs. Military Insurance Corp | FIT INVEST vs. Asia Commercial Bank |
| Joint Stock vs. FIT INVEST JSC | Joint Stock vs. Damsan JSC | Joint Stock vs. An Phat Plastic | Joint Stock 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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