Correlation Between FIT INVEST and Picomat Plastic
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Picomat Plastic 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 Picomat Plastic 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 Picomat Plastic JSC, you can compare the effects of market volatilities on FIT INVEST and Picomat Plastic 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 Picomat Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Picomat Plastic.
Diversification Opportunities for FIT INVEST and Picomat Plastic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIT and Picomat is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Picomat Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picomat Plastic 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 Picomat Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picomat Plastic JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Picomat Plastic go up and down completely randomly.
Pair Corralation between FIT INVEST and Picomat Plastic
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Picomat Plastic. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 1.54 times less risky than Picomat Plastic. The stock trades about -0.02 of its potential returns per unit of risk. The Picomat Plastic JSC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 950,000 in Picomat Plastic JSC on August 29, 2024 and sell it today you would earn a total of 350,000 from holding Picomat Plastic JSC or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.02% |
| Values | Daily Returns |
FIT INVEST JSC vs. Picomat Plastic JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Picomat Plastic JSC |
FIT INVEST and Picomat Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Picomat Plastic
The main advantage of trading using opposite FIT INVEST and Picomat Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Picomat Plastic 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 Picomat Plastic will offset losses from the drop in Picomat Plastic'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 |
| Picomat Plastic vs. FIT INVEST JSC | Picomat Plastic vs. Damsan JSC | Picomat Plastic vs. An Phat Plastic | Picomat Plastic 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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