Correlation Between FPT Securities and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both FPT Securities and POST TELECOMMU 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 Securities and POST TELECOMMU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPT Securities JSC and POST TELECOMMU, you can compare the effects of market volatilities on FPT Securities and POST TELECOMMU 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 Securities with a short position of POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPT Securities and POST TELECOMMU.
Diversification Opportunities for FPT Securities and POST TELECOMMU
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FPT and POST is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding FPT Securities JSC and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU and FPT Securities 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 Securities JSC are associated (or correlated) with POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of FPT Securities i.e., FPT Securities and POST TELECOMMU go up and down completely randomly.
Pair Corralation between FPT Securities and POST TELECOMMU
Assuming the 90 days trading horizon FPT Securities JSC is expected to generate 0.69 times more return on investment than POST TELECOMMU. However, FPT Securities JSC is 1.45 times less risky than POST TELECOMMU. It trades about 0.07 of its potential returns per unit of risk. POST TELECOMMU is currently generating about -0.05 per unit of risk. If you would invest 2,978,820 in FPT Securities JSC on September 3, 2024 and sell it today you would earn a total of 1,206,180 from holding FPT Securities JSC or generate 40.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.02% |
| Values | Daily Returns |
FPT Securities JSC vs. POST TELECOMMU
Performance |
| Timeline |
| FPT Securities JSC |
| POST TELECOMMU |
FPT Securities and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPT Securities and POST TELECOMMU
The main advantage of trading using opposite FPT Securities and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPT Securities position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| FPT Securities vs. FIT INVEST JSC | FPT Securities vs. Damsan JSC | FPT Securities vs. An Phat Plastic | FPT Securities vs. Alphanam ME |
| POST TELECOMMU vs. Century Synthetic Fiber | POST TELECOMMU vs. Telecoms Informatics JSC | POST TELECOMMU vs. Elcom Technology Communications | POST TELECOMMU vs. Petrolimex Insurance Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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