Correlation Between FPT Corp and Baoviet Securities
Can any of the company-specific risk be diversified away by investing in both FPT Corp and Baoviet Securities 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 Baoviet Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Corp and Baoviet Securities, you can compare the effects of market volatilities on FPT Corp and Baoviet Securities 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 Baoviet Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Corp and Baoviet Securities.
Diversification Opportunities for FPT Corp and Baoviet Securities
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FPT and Baoviet is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding FPT Corp and Baoviet Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoviet Securities 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 Baoviet Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoviet Securities has no effect on the direction of FPT Corp i.e., FPT Corp and Baoviet Securities go up and down completely randomly.
Pair Corralation between FPT Corp and Baoviet Securities
Assuming the 90 days trading horizon FPT Corp is expected to generate 0.55 times more return on investment than Baoviet Securities. However, FPT Corp is 1.81 times less risky than Baoviet Securities. It trades about 0.04 of its potential returns per unit of risk. Baoviet Securities is currently generating about -0.24 per unit of risk. If you would invest 14,810,000 in FPT Corp on October 20, 2024 and sell it today you would earn a total of 90,000 from holding FPT Corp or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Corp vs. Baoviet Securities
Performance |
| Timeline |
| FPT Corp |
| Baoviet Securities |
FPT Corp and Baoviet Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Corp and Baoviet Securities
The main advantage of trading using opposite FPT Corp and Baoviet Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Corp position performs unexpectedly, Baoviet Securities 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 Baoviet Securities will offset losses from the drop in Baoviet Securities' long position.| FPT Corp vs. FIT INVEST JSC | FPT Corp vs. Damsan JSC | FPT Corp vs. An Phat Plastic | FPT Corp vs. APG Securities Joint |
| Baoviet Securities vs. Tien Phong Plastic | Baoviet Securities vs. An Phat Holdings | Baoviet Securities vs. FPT Corp | Baoviet Securities vs. POST TELECOMMU |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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