Correlation Between FIT INVEST and Din Capital
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Din Capital 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 Din Capital 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 Din Capital Investment, you can compare the effects of market volatilities on FIT INVEST and Din Capital 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 Din Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Din Capital.
Diversification Opportunities for FIT INVEST and Din Capital
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIT and Din is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Din Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Din Capital 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 Din Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Din Capital Investment has no effect on the direction of FIT INVEST i.e., FIT INVEST and Din Capital go up and down completely randomly.
Pair Corralation between FIT INVEST and Din Capital
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Din Capital. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 1.41 times less risky than Din Capital. The stock trades about -0.33 of its potential returns per unit of risk. The Din Capital Investment is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 1,040,000 in Din Capital Investment on October 25, 2024 and sell it today you would lose (30,000) from holding Din Capital Investment or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
FIT INVEST JSC vs. Din Capital Investment
Performance |
| Timeline |
| FIT INVEST JSC |
| Din Capital Investment |
FIT INVEST and Din Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Din Capital
The main advantage of trading using opposite FIT INVEST and Din Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Din Capital 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 Din Capital will offset losses from the drop in Din Capital's long position.| FIT INVEST vs. Vinhomes JSC | FIT INVEST vs. Pha Le Plastics | FIT INVEST vs. Sao Vang Rubber | FIT INVEST vs. Danang Rubber JSC |
| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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