Correlation Between FPT Corp and An Phat
Can any of the company-specific risk be diversified away by investing in both FPT Corp and An Phat 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 FPT Corp and An Phat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Corp and An Phat Holdings, you can compare the effects of market volatilities on FPT Corp and An Phat 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 FPT Corp with a short position of An Phat. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Corp and An Phat.
Diversification Opportunities for FPT Corp and An Phat
Almost no diversification
The 3 months correlation between FPT and APH is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding FPT Corp and An Phat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Phat Holdings and FPT Corp 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 FPT Corp are associated (or correlated) with An Phat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Phat Holdings has no effect on the direction of FPT Corp i.e., FPT Corp and An Phat go up and down completely randomly.
Pair Corralation between FPT Corp and An Phat
Assuming the 90 days trading horizon FPT Corp is expected to under-perform the An Phat. But the stock apears to be less risky and, when comparing its historical volatility, FPT Corp is 2.29 times less risky than An Phat. The stock trades about -0.09 of its potential returns per unit of risk. The An Phat Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 671,000 in An Phat Holdings on October 17, 2024 and sell it today you would earn a total of 22,000 from holding An Phat Holdings or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Corp vs. An Phat Holdings
Performance |
| Timeline |
| FPT Corp |
| An Phat Holdings |
FPT Corp and An Phat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Corp and An Phat
The main advantage of trading using opposite FPT Corp and An Phat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Corp position performs unexpectedly, An Phat 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 An Phat will offset losses from the drop in An Phat's long position.| FPT Corp vs. PetroVietnam Transportation Corp | FPT Corp vs. Transimex Transportation JSC | FPT Corp vs. Visicons Construction and | FPT Corp vs. Transport and Industry |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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