Correlation Between FPT Digital and 1369 Construction
Can any of the company-specific risk be diversified away by investing in both FPT Digital and 1369 Construction 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 Digital and 1369 Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Digital Retail and 1369 Construction JSC, you can compare the effects of market volatilities on FPT Digital and 1369 Construction 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 Digital with a short position of 1369 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Digital and 1369 Construction.
Diversification Opportunities for FPT Digital and 1369 Construction
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FPT and 1369 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FPT Digital Retail and 1369 Construction JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1369 Construction JSC and FPT Digital 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 Digital Retail are associated (or correlated) with 1369 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1369 Construction JSC has no effect on the direction of FPT Digital i.e., FPT Digital and 1369 Construction go up and down completely randomly.
Pair Corralation between FPT Digital and 1369 Construction
Assuming the 90 days trading horizon FPT Digital Retail is expected to generate 0.49 times more return on investment than 1369 Construction. However, FPT Digital Retail is 2.04 times less risky than 1369 Construction. It trades about 0.08 of its potential returns per unit of risk. 1369 Construction JSC is currently generating about -0.1 per unit of risk. If you would invest 18,190,000 in FPT Digital Retail on October 11, 2024 and sell it today you would earn a total of 210,000 from holding FPT Digital Retail or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FPT Digital Retail vs. 1369 Construction JSC
Performance |
| Timeline |
| FPT Digital Retail |
| 1369 Construction JSC |
FPT Digital and 1369 Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Digital and 1369 Construction
The main advantage of trading using opposite FPT Digital and 1369 Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Digital position performs unexpectedly, 1369 Construction 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 1369 Construction will offset losses from the drop in 1369 Construction's long position.| FPT Digital vs. Vinhomes JSC | FPT Digital vs. Hanoi Beer Alcohol | FPT Digital vs. Danang Education Investment | FPT Digital vs. Fecon Mining JSC |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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