Correlation Between FIT INVEST and Telecoms Informatics
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Telecoms Informatics 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 Telecoms Informatics 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 Telecoms Informatics JSC, you can compare the effects of market volatilities on FIT INVEST and Telecoms Informatics 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 Telecoms Informatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Telecoms Informatics.
Diversification Opportunities for FIT INVEST and Telecoms Informatics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIT and Telecoms is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Telecoms Informatics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecoms Informatics 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 Telecoms Informatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecoms Informatics JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Telecoms Informatics go up and down completely randomly.
Pair Corralation between FIT INVEST and Telecoms Informatics
Assuming the 90 days trading horizon FIT INVEST is expected to generate 2.29 times less return on investment than Telecoms Informatics. In addition to that, FIT INVEST is 1.14 times more volatile than Telecoms Informatics JSC. It trades about 0.01 of its total potential returns per unit of risk. Telecoms Informatics JSC is currently generating about 0.03 per unit of volatility. If you would invest 1,213,841 in Telecoms Informatics JSC on November 5, 2024 and sell it today you would earn a total of 236,159 from holding Telecoms Informatics JSC or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Telecoms Informatics JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Telecoms Informatics JSC |
FIT INVEST and Telecoms Informatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Telecoms Informatics
The main advantage of trading using opposite FIT INVEST and Telecoms Informatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Telecoms Informatics 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 Telecoms Informatics will offset losses from the drop in Telecoms Informatics' long position.| FIT INVEST vs. Tri Viet Management | FIT INVEST vs. Dong A Hotel | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. Ducgiang Chemicals Detergent |
| Telecoms Informatics vs. Innovative Technology Development | Telecoms Informatics vs. Tin Nghia Industrial | Telecoms Informatics vs. Tien Giang Investment | Telecoms Informatics vs. PV2 Investment JSC |
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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