Correlation Between FPT Corp and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both FPT Corp and FIT INVEST 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 FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Corp and FIT INVEST JSC, you can compare the effects of market volatilities on FPT Corp and FIT INVEST 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 FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Corp and FIT INVEST.
Diversification Opportunities for FPT Corp and FIT INVEST
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FPT and FIT is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FPT Corp and FIT INVEST JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT INVEST JSC 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 FIT INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT INVEST JSC has no effect on the direction of FPT Corp i.e., FPT Corp and FIT INVEST go up and down completely randomly.
Pair Corralation between FPT Corp and FIT INVEST
Assuming the 90 days trading horizon FPT Corp is expected to generate 1.19 times more return on investment than FIT INVEST. However, FPT Corp is 1.19 times more volatile than FIT INVEST JSC. It trades about 0.09 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.1 per unit of risk. If you would invest 13,366,700 in FPT Corp on October 18, 2024 and sell it today you would earn a total of 1,183,300 from holding FPT Corp or generate 8.85% 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. FIT INVEST JSC
Performance |
| Timeline |
| FPT Corp |
| FIT INVEST JSC |
FPT Corp and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Corp and FIT INVEST
The main advantage of trading using opposite FPT Corp and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Corp position performs unexpectedly, FIT INVEST 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 FIT INVEST will offset losses from the drop in FIT INVEST's 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 |
| FIT INVEST vs. Agriculture Printing and | FIT INVEST vs. PetroVietnam Transportation Corp | FIT INVEST vs. Ba Ria Thermal | FIT INVEST vs. Mechanics Construction and |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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