Correlation Between FIT INVEST and Thanh Dat
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Thanh Dat 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 Thanh Dat 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 Thanh Dat Investment, you can compare the effects of market volatilities on FIT INVEST and Thanh Dat 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 Thanh Dat. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Thanh Dat.
Diversification Opportunities for FIT INVEST and Thanh Dat
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIT and Thanh is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Thanh Dat Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thanh Dat 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 Thanh Dat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thanh Dat Investment has no effect on the direction of FIT INVEST i.e., FIT INVEST and Thanh Dat go up and down completely randomly.
Pair Corralation between FIT INVEST and Thanh Dat
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Thanh Dat. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 2.31 times less risky than Thanh Dat. The stock trades about -0.1 of its potential returns per unit of risk. The Thanh Dat Investment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,470,000 in Thanh Dat Investment on August 29, 2024 and sell it today you would earn a total of 110,000 from holding Thanh Dat Investment or generate 4.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
FIT INVEST JSC vs. Thanh Dat Investment
Performance |
Timeline |
FIT INVEST JSC |
Thanh Dat Investment |
FIT INVEST and Thanh Dat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIT INVEST and Thanh Dat
The main advantage of trading using opposite FIT INVEST and Thanh Dat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Thanh Dat 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 Thanh Dat will offset losses from the drop in Thanh Dat's long position.FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. Alphanam ME | FIT INVEST vs. APG Securities Joint |
Thanh Dat vs. FIT INVEST JSC | Thanh Dat vs. Damsan JSC | Thanh Dat vs. An Phat Plastic | Thanh Dat 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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