Correlation Between FPT Digital and Plastic Additives
Can any of the company-specific risk be diversified away by investing in both FPT Digital and Plastic Additives 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 Plastic Additives 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 Plastic Additives JSC, you can compare the effects of market volatilities on FPT Digital and Plastic Additives 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 Plastic Additives. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Digital and Plastic Additives.
Diversification Opportunities for FPT Digital and Plastic Additives
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FPT and Plastic is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding FPT Digital Retail and Plastic Additives JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Additives 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 Plastic Additives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Additives JSC has no effect on the direction of FPT Digital i.e., FPT Digital and Plastic Additives go up and down completely randomly.
Pair Corralation between FPT Digital and Plastic Additives
Assuming the 90 days trading horizon FPT Digital Retail is expected to generate 0.59 times more return on investment than Plastic Additives. However, FPT Digital Retail is 1.69 times less risky than Plastic Additives. It trades about 0.12 of its potential returns per unit of risk. Plastic Additives JSC is currently generating about 0.04 per unit of risk. If you would invest 6,235,246 in FPT Digital Retail on August 29, 2024 and sell it today you would earn a total of 11,074,754 from holding FPT Digital Retail or generate 177.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.33% |
| Values | Daily Returns |
FPT Digital Retail vs. Plastic Additives JSC
Performance |
| Timeline |
| FPT Digital Retail |
| Plastic Additives JSC |
FPT Digital and Plastic Additives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Digital and Plastic Additives
The main advantage of trading using opposite FPT Digital and Plastic Additives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Digital position performs unexpectedly, Plastic Additives 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 Plastic Additives will offset losses from the drop in Plastic Additives' long position.| FPT Digital vs. MST Investment JSC | FPT Digital vs. Danang Education Investment | FPT Digital vs. Transport and Industry | FPT Digital vs. Hai An Transport |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |