Correlation Between FIT INVEST and Tri Viet
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Tri Viet 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 Tri Viet 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 Tri Viet Management, you can compare the effects of market volatilities on FIT INVEST and Tri Viet 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 Tri Viet. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Tri Viet.
Diversification Opportunities for FIT INVEST and Tri Viet
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIT and Tri is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Tri Viet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Viet Management 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 Tri Viet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Viet Management has no effect on the direction of FIT INVEST i.e., FIT INVEST and Tri Viet go up and down completely randomly.
Pair Corralation between FIT INVEST and Tri Viet
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Tri Viet. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 3.28 times less risky than Tri Viet. The stock trades about -0.2 of its potential returns per unit of risk. The Tri Viet Management is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 990,000 in Tri Viet Management on August 31, 2024 and sell it today you would earn a total of 10,000 from holding Tri Viet Management or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FIT INVEST JSC vs. Tri Viet Management
Performance |
| Timeline |
| FIT INVEST JSC |
| Tri Viet Management |
FIT INVEST and Tri Viet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Tri Viet
The main advantage of trading using opposite FIT INVEST and Tri Viet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Tri Viet 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 Tri Viet will offset losses from the drop in Tri Viet's long position.| FIT INVEST vs. Plastic Additives JSC | FIT INVEST vs. Picomat Plastic JSC | FIT INVEST vs. Hanoi Beer Alcohol | FIT INVEST vs. Military Insurance Corp |
| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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