Correlation Between FIT INVEST and Plastic Additives
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Plastic Additives 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 Plastic Additives 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 Plastic Additives JSC, you can compare the effects of market volatilities on FIT INVEST and Plastic Additives 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 Plastic Additives. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Plastic Additives.
Diversification Opportunities for FIT INVEST and Plastic Additives
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIT and Plastic is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Plastic Additives JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Additives 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 Plastic Additives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Additives JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Plastic Additives go up and down completely randomly.
Pair Corralation between FIT INVEST and Plastic Additives
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Plastic Additives. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 4.33 times less risky than Plastic Additives. The stock trades about -0.19 of its potential returns per unit of risk. The Plastic Additives JSC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 840,000 in Plastic Additives JSC on September 2, 2024 and sell it today you would earn a total of 140,000 from holding Plastic Additives JSC or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FIT INVEST JSC vs. Plastic Additives JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Plastic Additives JSC |
FIT INVEST and Plastic Additives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Plastic Additives
The main advantage of trading using opposite FIT INVEST and Plastic Additives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Plastic Additives 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 Plastic Additives will offset losses from the drop in Plastic Additives' long position.| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. Alphanam ME | FIT INVEST vs. Binhthuan Agriculture Services |
| Plastic Additives vs. Song Hong Garment | Plastic Additives vs. Alphanam ME | Plastic Additives vs. Hochiminh City Metal | Plastic Additives vs. Atesco Industrial Cartering |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |