Correlation Between Japan Vietnam and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Japan Vietnam 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 Japan Vietnam and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Vietnam Medical and FIT INVEST JSC, you can compare the effects of market volatilities on Japan Vietnam 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 Japan Vietnam with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Vietnam and FIT INVEST.
Diversification Opportunities for Japan Vietnam and FIT INVEST
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Japan and FIT is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Japan Vietnam Medical 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 Japan Vietnam 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 Japan Vietnam Medical 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 Japan Vietnam i.e., Japan Vietnam and FIT INVEST go up and down completely randomly.
Pair Corralation between Japan Vietnam and FIT INVEST
Assuming the 90 days trading horizon Japan Vietnam is expected to generate 9.57 times less return on investment than FIT INVEST. But when comparing it to its historical volatility, Japan Vietnam Medical is 1.15 times less risky than FIT INVEST. It trades about 0.0 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 400,000 in FIT INVEST JSC on August 27, 2024 and sell it today you would earn a total of 16,000 from holding FIT INVEST JSC or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Vietnam Medical vs. FIT INVEST JSC
Performance |
| Timeline |
| Japan Vietnam Medical |
| FIT INVEST JSC |
Japan Vietnam and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Vietnam and FIT INVEST
The main advantage of trading using opposite Japan Vietnam and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Vietnam 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.| Japan Vietnam vs. FIT INVEST JSC | Japan Vietnam vs. Damsan JSC | Japan Vietnam vs. An Phat Plastic | Japan Vietnam 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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