Correlation Between FIT INVEST and Post
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Post 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 Post 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 Post and Telecommunications, you can compare the effects of market volatilities on FIT INVEST and Post 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 Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Post.
Diversification Opportunities for FIT INVEST and Post
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIT and Post is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Post and Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post and Telecommuni 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 Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post and Telecommuni has no effect on the direction of FIT INVEST i.e., FIT INVEST and Post go up and down completely randomly.
Pair Corralation between FIT INVEST and Post
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Post. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 2.34 times less risky than Post. The stock trades about -0.12 of its potential returns per unit of risk. The Post and Telecommunications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 467,000 in Post and Telecommunications on August 28, 2024 and sell it today you would lose (7,000) from holding Post and Telecommunications or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Post and Telecommunications
Performance |
| Timeline |
| FIT INVEST JSC |
| Post and Telecommuni |
FIT INVEST and Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Post
The main advantage of trading using opposite FIT INVEST and Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Post 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 Post will offset losses from the drop in Post's 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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |