Correlation Between Binh Thanh and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Binh Thanh and FIT INVEST 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 Binh Thanh and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Thanh Import and FIT INVEST JSC, you can compare the effects of market volatilities on Binh Thanh and FIT INVEST 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 Binh Thanh with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Thanh and FIT INVEST.
Diversification Opportunities for Binh Thanh and FIT INVEST
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Binh and FIT is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Binh Thanh Import and FIT INVEST JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT INVEST JSC and Binh Thanh 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 Binh Thanh Import are associated (or correlated) with FIT INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT INVEST JSC has no effect on the direction of Binh Thanh i.e., Binh Thanh and FIT INVEST go up and down completely randomly.
Pair Corralation between Binh Thanh and FIT INVEST
Assuming the 90 days trading horizon Binh Thanh Import is expected to under-perform the FIT INVEST. In addition to that, Binh Thanh is 2.12 times more volatile than FIT INVEST JSC. It trades about 0.0 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.0 per unit of volatility. If you would invest 433,000 in FIT INVEST JSC on August 26, 2024 and sell it today you would lose (18,000) from holding FIT INVEST JSC or give up 4.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Thanh Import vs. FIT INVEST JSC
Performance |
| Timeline |
| Binh Thanh Import |
| FIT INVEST JSC |
Binh Thanh and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Thanh and FIT INVEST
The main advantage of trading using opposite Binh Thanh and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Thanh position performs unexpectedly, FIT INVEST 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 FIT INVEST will offset losses from the drop in FIT INVEST's long position.| Binh Thanh vs. FIT INVEST JSC | Binh Thanh vs. Damsan JSC | Binh Thanh vs. An Phat Plastic | Binh Thanh vs. APG Securities Joint |
| FIT INVEST vs. Hochiminh City Metal | FIT INVEST vs. VTC Telecommunications JSC | FIT INVEST vs. POST TELECOMMU | FIT INVEST vs. Post and Telecommunications |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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