Correlation Between Ha Long and FPT Digital
Can any of the company-specific risk be diversified away by investing in both Ha Long and FPT Digital 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 Ha Long and FPT Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ha Long Investment and FPT Digital Retail, you can compare the effects of market volatilities on Ha Long and FPT Digital 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 Ha Long with a short position of FPT Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ha Long and FPT Digital.
Diversification Opportunities for Ha Long and FPT Digital
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HID and FPT is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ha Long Investment and FPT Digital Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Digital Retail and Ha Long 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 Ha Long Investment are associated (or correlated) with FPT Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Digital Retail has no effect on the direction of Ha Long i.e., Ha Long and FPT Digital go up and down completely randomly.
Pair Corralation between Ha Long and FPT Digital
Assuming the 90 days trading horizon Ha Long Investment is expected to under-perform the FPT Digital. In addition to that, Ha Long is 1.03 times more volatile than FPT Digital Retail. It trades about -0.02 of its total potential returns per unit of risk. FPT Digital Retail is currently generating about 0.12 per unit of volatility. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ha Long Investment vs. FPT Digital Retail
Performance |
| Timeline |
| Ha Long Investment |
| FPT Digital Retail |
Ha Long and FPT Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ha Long and FPT Digital
The main advantage of trading using opposite Ha Long and FPT Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ha Long position performs unexpectedly, FPT Digital 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 FPT Digital will offset losses from the drop in FPT Digital's long position.| Ha Long vs. Thanh Dat Investment | Ha Long vs. Dinhvu Port Investment | Ha Long vs. Vu Dang Investment | Ha Long vs. Hai An Transport |
| FPT Digital vs. FIT INVEST JSC | FPT Digital vs. Damsan JSC | FPT Digital vs. An Phat Plastic | FPT Digital vs. Alphanam ME |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |