Correlation Between FIT INVEST and CEO Group
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and CEO Group 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 CEO Group 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 CEO Group JSC, you can compare the effects of market volatilities on FIT INVEST and CEO Group 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 CEO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and CEO Group.
Diversification Opportunities for FIT INVEST and CEO Group
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIT and CEO is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and CEO Group JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Group 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 CEO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Group JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and CEO Group go up and down completely randomly.
Pair Corralation between FIT INVEST and CEO Group
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.35 times more return on investment than CEO Group. However, FIT INVEST JSC is 2.87 times less risky than CEO Group. It trades about -0.29 of its potential returns per unit of risk. CEO Group JSC is currently generating about -0.24 per unit of risk. If you would invest 422,000 in FIT INVEST JSC on October 24, 2024 and sell it today you would lose (18,000) from holding FIT INVEST JSC or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. CEO Group JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| CEO Group JSC |
FIT INVEST and CEO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and CEO Group
The main advantage of trading using opposite FIT INVEST and CEO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, CEO Group 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 CEO Group will offset losses from the drop in CEO Group's long position.| FIT INVEST vs. Petrolimex Information Technology | FIT INVEST vs. Dinhvu Port Investment | FIT INVEST vs. TDT Investment and | FIT INVEST vs. HVC Investment and |
| CEO Group vs. Telecoms Informatics JSC | CEO Group vs. Elcom Technology Communications | CEO Group vs. Pacific Petroleum Transportation | CEO Group vs. Da Nang Construction |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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