Correlation Between FIT INVEST and Binh Duong
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Binh Duong 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 Binh Duong 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 Binh Duong Trade, you can compare the effects of market volatilities on FIT INVEST and Binh Duong 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 Binh Duong. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Binh Duong.
Diversification Opportunities for FIT INVEST and Binh Duong
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIT and Binh is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Binh Duong Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binh Duong Trade 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 Binh Duong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binh Duong Trade has no effect on the direction of FIT INVEST i.e., FIT INVEST and Binh Duong go up and down completely randomly.
Pair Corralation between FIT INVEST and Binh Duong
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Binh Duong. In addition to that, FIT INVEST is 1.28 times more volatile than Binh Duong Trade. It trades about -0.1 of its total potential returns per unit of risk. Binh Duong Trade is currently generating about 0.18 per unit of volatility. If you would invest 994,000 in Binh Duong Trade on August 29, 2024 and sell it today you would earn a total of 36,000 from holding Binh Duong Trade or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Binh Duong Trade
Performance |
| Timeline |
| FIT INVEST JSC |
| Binh Duong Trade |
FIT INVEST and Binh Duong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Binh Duong
The main advantage of trading using opposite FIT INVEST and Binh Duong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Binh Duong 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 Binh Duong will offset losses from the drop in Binh Duong's long position.| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
| Binh Duong vs. FIT INVEST JSC | Binh Duong vs. Damsan JSC | Binh Duong vs. An Phat Plastic | Binh Duong 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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