Correlation Between FIT INVEST and Hanoi Plastics
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Hanoi Plastics 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 Hanoi Plastics 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 Hanoi Plastics JSC, you can compare the effects of market volatilities on FIT INVEST and Hanoi Plastics 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 Hanoi Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Hanoi Plastics.
Diversification Opportunities for FIT INVEST and Hanoi Plastics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIT and Hanoi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Hanoi Plastics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanoi Plastics 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 Hanoi Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanoi Plastics JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Hanoi Plastics go up and down completely randomly.
Pair Corralation between FIT INVEST and Hanoi Plastics
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 1.03 times more return on investment than Hanoi Plastics. However, FIT INVEST is 1.03 times more volatile than Hanoi Plastics JSC. It trades about 0.02 of its potential returns per unit of risk. Hanoi Plastics JSC is currently generating about 0.0 per unit of risk. If you would invest 400,000 in FIT INVEST JSC on August 27, 2024 and sell it today you would earn a total of 16,000 from holding FIT INVEST JSC or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Hanoi Plastics JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Hanoi Plastics JSC |
FIT INVEST and Hanoi Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Hanoi Plastics
The main advantage of trading using opposite FIT INVEST and Hanoi Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Hanoi Plastics 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 Hanoi Plastics will offset losses from the drop in Hanoi Plastics' long position.| FIT INVEST vs. Hanoi Plastics JSC | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pacific Petroleum Transportation |
| Hanoi Plastics vs. FIT INVEST JSC | Hanoi Plastics vs. Damsan JSC | Hanoi Plastics vs. An Phat Plastic | Hanoi Plastics 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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