Correlation Between FPT Digital and Dinhvu Port
Can any of the company-specific risk be diversified away by investing in both FPT Digital and Dinhvu Port 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 Dinhvu Port 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 Dinhvu Port Investment, you can compare the effects of market volatilities on FPT Digital and Dinhvu Port 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 Dinhvu Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Digital and Dinhvu Port.
Diversification Opportunities for FPT Digital and Dinhvu Port
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FPT and Dinhvu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FPT Digital Retail and Dinhvu Port Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dinhvu Port Investment 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 Dinhvu Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dinhvu Port Investment has no effect on the direction of FPT Digital i.e., FPT Digital and Dinhvu Port go up and down completely randomly.
Pair Corralation between FPT Digital and Dinhvu Port
Assuming the 90 days trading horizon FPT Digital Retail is expected to generate 1.36 times more return on investment than Dinhvu Port. However, FPT Digital is 1.36 times more volatile than Dinhvu Port Investment. It trades about 0.1 of its potential returns per unit of risk. Dinhvu Port Investment is currently generating about 0.13 per unit of risk. If you would invest 5,456,912 in FPT Digital Retail on January 11, 2025 and sell it today you would earn a total of 7,813,088 from holding FPT Digital Retail or generate 143.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Digital Retail vs. Dinhvu Port Investment
Performance |
| Timeline |
| FPT Digital Retail |
| Dinhvu Port Investment |
FPT Digital and Dinhvu Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Digital and Dinhvu Port
The main advantage of trading using opposite FPT Digital and Dinhvu Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Digital position performs unexpectedly, Dinhvu Port 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 Dinhvu Port will offset losses from the drop in Dinhvu Port's long position.| FPT Digital vs. Long Giang Investment | FPT Digital vs. Din Capital Investment | FPT Digital vs. Hochiminh City Metal | FPT Digital vs. Ipa Investments Group |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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