Correlation Between FIT INVEST and Vnsteel Vicasa
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Vnsteel Vicasa 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 Vnsteel Vicasa 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 Vnsteel Vicasa JSC, you can compare the effects of market volatilities on FIT INVEST and Vnsteel Vicasa 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 Vnsteel Vicasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Vnsteel Vicasa.
Diversification Opportunities for FIT INVEST and Vnsteel Vicasa
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIT and Vnsteel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Vnsteel Vicasa JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vnsteel Vicasa 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 Vnsteel Vicasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vnsteel Vicasa JSC has no effect on the direction of FIT INVEST i.e., FIT INVEST and Vnsteel Vicasa go up and down completely randomly.
Pair Corralation between FIT INVEST and Vnsteel Vicasa
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.23 times more return on investment than Vnsteel Vicasa. However, FIT INVEST JSC is 4.31 times less risky than Vnsteel Vicasa. It trades about -0.33 of its potential returns per unit of risk. Vnsteel Vicasa JSC is currently generating about -0.13 per unit of risk. If you would invest 421,000 in FIT INVEST JSC on October 25, 2024 and sell it today you would lose (21,000) from holding FIT INVEST JSC or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIT INVEST JSC vs. Vnsteel Vicasa JSC
Performance |
| Timeline |
| FIT INVEST JSC |
| Vnsteel Vicasa JSC |
FIT INVEST and Vnsteel Vicasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIT INVEST and Vnsteel Vicasa
The main advantage of trading using opposite FIT INVEST and Vnsteel Vicasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Vnsteel Vicasa 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 Vnsteel Vicasa will offset losses from the drop in Vnsteel Vicasa's long position.| FIT INVEST vs. Vinhomes JSC | FIT INVEST vs. Pha Le Plastics | FIT INVEST vs. Sao Vang Rubber | FIT INVEST vs. Danang Rubber JSC |
| Vnsteel Vicasa vs. FIT INVEST JSC | Vnsteel Vicasa vs. Damsan JSC | Vnsteel Vicasa vs. An Phat Plastic | Vnsteel Vicasa 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |