Correlation Between Construction and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Construction and Fecon Mining 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 Construction and Fecon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Construction And Investment and Fecon Mining JSC, you can compare the effects of market volatilities on Construction and Fecon Mining 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 Construction with a short position of Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Construction and Fecon Mining.
Diversification Opportunities for Construction and Fecon Mining
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Construction and Fecon is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Construction And Investment and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining JSC and Construction 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 Construction And Investment are associated (or correlated) with Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Construction i.e., Construction and Fecon Mining go up and down completely randomly.
Pair Corralation between Construction and Fecon Mining
Assuming the 90 days trading horizon Construction And Investment is expected to generate 1.06 times more return on investment than Fecon Mining. However, Construction is 1.06 times more volatile than Fecon Mining JSC. It trades about 0.05 of its potential returns per unit of risk. Fecon Mining JSC is currently generating about -0.23 per unit of risk. If you would invest 3,790,000 in Construction And Investment on September 2, 2024 and sell it today you would earn a total of 50,000 from holding Construction And Investment or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Construction And Investment vs. Fecon Mining JSC
Performance |
| Timeline |
| Construction And Inv |
| Fecon Mining JSC |
Construction and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Construction and Fecon Mining
The main advantage of trading using opposite Construction and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Construction position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| Construction vs. Mechanics Construction and | Construction vs. Saigon Viendong Technology | Construction vs. Techcom Vietnam REIT | Construction vs. Hung Hau Agricultural |
| Fecon Mining vs. Ha Long Investment | Fecon Mining vs. Everland Investment JSC | Fecon Mining vs. Hochiminh City Metal | Fecon Mining vs. Vu Dang Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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