Correlation Between FIT INVEST and Binh Thanh
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Binh Thanh 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 Binh Thanh 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 Binh Thanh Import, you can compare the effects of market volatilities on FIT INVEST and Binh Thanh 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 Binh Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Binh Thanh.
Diversification Opportunities for FIT INVEST and Binh Thanh
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FIT and Binh is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Binh Thanh Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Thanh Import 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 Binh Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Thanh Import has no effect on the direction of FIT INVEST i.e., FIT INVEST and Binh Thanh go up and down completely randomly.
Pair Corralation between FIT INVEST and Binh Thanh
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.2 times more return on investment than Binh Thanh. However, FIT INVEST JSC is 5.12 times less risky than Binh Thanh. It trades about -0.1 of its potential returns per unit of risk. Binh Thanh Import is currently generating about -0.13 per unit of risk. If you would invest 441,000 in FIT INVEST JSC on August 30, 2024 and sell it today you would lose (20,000) from holding FIT INVEST JSC or give up 4.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Binh Thanh Import
Performance |
| Timeline |
| FIT INVEST JSC |
| Binh Thanh Import |
FIT INVEST and Binh Thanh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Binh Thanh
The main advantage of trading using opposite FIT INVEST and Binh Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Binh Thanh 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 Binh Thanh will offset losses from the drop in Binh Thanh'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 |
| Binh Thanh vs. FIT INVEST JSC | Binh Thanh vs. Damsan JSC | Binh Thanh vs. An Phat Plastic | Binh Thanh 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets |