Correlation Between FPT Digital and Hai An
Can any of the company-specific risk be diversified away by investing in both FPT Digital and Hai An 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 Hai An 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 Hai An Transport, you can compare the effects of market volatilities on FPT Digital and Hai An 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 Hai An. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Digital and Hai An.
Diversification Opportunities for FPT Digital and Hai An
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FPT and Hai is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding FPT Digital Retail and Hai An Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hai An Transport 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 Hai An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hai An Transport has no effect on the direction of FPT Digital i.e., FPT Digital and Hai An go up and down completely randomly.
Pair Corralation between FPT Digital and Hai An
Assuming the 90 days trading horizon FPT Digital Retail is expected to generate 0.76 times more return on investment than Hai An. However, FPT Digital Retail is 1.31 times less risky than Hai An. It trades about 0.12 of its potential returns per unit of risk. Hai An Transport is currently generating about 0.08 per unit of risk. If you would invest 6,329,338 in FPT Digital Retail on September 2, 2024 and sell it today you would earn a total of 11,520,662 from holding FPT Digital Retail or generate 182.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPT Digital Retail vs. Hai An Transport
Performance |
| Timeline |
| FPT Digital Retail |
| Hai An Transport |
FPT Digital and Hai An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Digital and Hai An
The main advantage of trading using opposite FPT Digital and Hai An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Digital position performs unexpectedly, Hai An 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 Hai An will offset losses from the drop in Hai An's long position.| FPT Digital vs. FIT INVEST JSC | FPT Digital vs. Damsan JSC | FPT Digital vs. An Phat Plastic | FPT Digital vs. Alphanam ME |
| Hai An vs. FPT Digital Retail | Hai An vs. IDJ FINANCIAL | Hai An vs. CEO Group JSC | Hai An vs. Vincom Retail JSC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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