Correlation Between FPT Corp and 577 Investment
Can any of the company-specific risk be diversified away by investing in both FPT Corp and 577 Investment 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 577 Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Corp and 577 Investment Corp, you can compare the effects of market volatilities on FPT Corp and 577 Investment 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 577 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Corp and 577 Investment.
Diversification Opportunities for FPT Corp and 577 Investment
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FPT and 577 is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding FPT Corp and 577 Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 577 Investment Corp 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 577 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 577 Investment Corp has no effect on the direction of FPT Corp i.e., FPT Corp and 577 Investment go up and down completely randomly.
Pair Corralation between FPT Corp and 577 Investment
Assuming the 90 days trading horizon FPT Corp is expected to generate 0.62 times more return on investment than 577 Investment. However, FPT Corp is 1.61 times less risky than 577 Investment. It trades about 0.13 of its potential returns per unit of risk. 577 Investment Corp is currently generating about 0.0 per unit of risk. If you would invest 13,446,200 in FPT Corp on November 1, 2024 and sell it today you would earn a total of 1,893,800 from holding FPT Corp or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Corp vs. 577 Investment Corp
Performance |
| Timeline |
| FPT Corp |
| 577 Investment Corp |
FPT Corp and 577 Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Corp and 577 Investment
The main advantage of trading using opposite FPT Corp and 577 Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Corp position performs unexpectedly, 577 Investment 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 577 Investment will offset losses from the drop in 577 Investment's long position.| FPT Corp vs. HVC Investment and | FPT Corp vs. Tien Giang Investment | FPT Corp vs. Taseco Air Services | FPT Corp vs. 577 Investment Corp |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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