Correlation Between FIT INVEST and Transport
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Transport 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 Transport 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 Transport and Industry, you can compare the effects of market volatilities on FIT INVEST and Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Transport.
Diversification Opportunities for FIT INVEST and Transport
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FIT and Transport is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Industry 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of FIT INVEST i.e., FIT INVEST and Transport go up and down completely randomly.
Pair Corralation between FIT INVEST and Transport
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.87 times more return on investment than Transport. However, FIT INVEST JSC is 1.15 times less risky than Transport. It trades about -0.25 of its potential returns per unit of risk. Transport and Industry is currently generating about -0.5 per unit of risk. If you would invest 418,000 in FIT INVEST JSC on November 4, 2024 and sell it today you would lose (13,000) from holding FIT INVEST JSC or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Transport and Industry
Performance |
| Timeline |
| FIT INVEST JSC |
| Transport and Industry |
FIT INVEST and Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Transport
The main advantage of trading using opposite FIT INVEST and Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Transport 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 Transport will offset losses from the drop in Transport's long position.| FIT INVEST vs. Danang Education Investment | FIT INVEST vs. Mobile World Investment | FIT INVEST vs. Thanh Dat Investment | FIT INVEST vs. Vien Dong Investment |
| Transport vs. Everland Investment JSC | Transport vs. TDT Investment and | Transport vs. PV2 Investment JSC | Transport vs. Asia Pacific Investment |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |