Correlation Between Telecoms Informatics and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Telecoms Informatics 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 Telecoms Informatics and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecoms Informatics JSC and FIT INVEST JSC, you can compare the effects of market volatilities on Telecoms Informatics 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 Telecoms Informatics with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecoms Informatics and FIT INVEST.
Diversification Opportunities for Telecoms Informatics and FIT INVEST
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telecoms and FIT is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Telecoms Informatics JSC 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 Telecoms Informatics 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 Telecoms Informatics JSC 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 Telecoms Informatics i.e., Telecoms Informatics and FIT INVEST go up and down completely randomly.
Pair Corralation between Telecoms Informatics and FIT INVEST
Assuming the 90 days trading horizon Telecoms Informatics JSC is expected to generate 1.44 times more return on investment than FIT INVEST. However, Telecoms Informatics is 1.44 times more volatile than FIT INVEST JSC. It trades about 0.03 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.04 per unit of risk. If you would invest 1,240,000 in Telecoms Informatics JSC on August 28, 2024 and sell it today you would earn a total of 35,000 from holding Telecoms Informatics JSC or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecoms Informatics JSC vs. FIT INVEST JSC
Performance |
| Timeline |
| Telecoms Informatics JSC |
| FIT INVEST JSC |
Telecoms Informatics and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecoms Informatics and FIT INVEST
The main advantage of trading using opposite Telecoms Informatics and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecoms Informatics 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.| Telecoms Informatics vs. FIT INVEST JSC | Telecoms Informatics vs. Damsan JSC | Telecoms Informatics vs. An Phat Plastic | Telecoms Informatics vs. APG Securities Joint |
| FIT INVEST vs. Hanoi Plastics JSC | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pacific Petroleum Transportation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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