Correlation Between Picomat Plastic and FPT Digital
Can any of the company-specific risk be diversified away by investing in both Picomat Plastic 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 Picomat Plastic and FPT Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Picomat Plastic JSC and FPT Digital Retail, you can compare the effects of market volatilities on Picomat Plastic 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 Picomat Plastic with a short position of FPT Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Picomat Plastic and FPT Digital.
Diversification Opportunities for Picomat Plastic and FPT Digital
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Picomat and FPT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Picomat Plastic JSC 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 Picomat Plastic 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 Picomat Plastic JSC 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 Picomat Plastic i.e., Picomat Plastic and FPT Digital go up and down completely randomly.
Pair Corralation between Picomat Plastic and FPT Digital
Assuming the 90 days trading horizon Picomat Plastic JSC is expected to generate 4.63 times more return on investment than FPT Digital. However, Picomat Plastic is 4.63 times more volatile than FPT Digital Retail. It trades about 0.07 of its potential returns per unit of risk. FPT Digital Retail is currently generating about 0.13 per unit of risk. If you would invest 1,290,000 in Picomat Plastic JSC on October 20, 2024 and sell it today you would earn a total of 40,000 from holding Picomat Plastic JSC or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Picomat Plastic JSC vs. FPT Digital Retail
Performance |
| Timeline |
| Picomat Plastic JSC |
| FPT Digital Retail |
Picomat Plastic and FPT Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Picomat Plastic and FPT Digital
The main advantage of trading using opposite Picomat Plastic and FPT Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Picomat Plastic 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.| Picomat Plastic vs. Century Synthetic Fiber | Picomat Plastic vs. PC3 Investment JSC | Picomat Plastic vs. HVC Investment and | Picomat Plastic vs. Thanh Dat Investment |
| FPT Digital vs. Riverway Management JSC | FPT Digital vs. HVC Investment and | FPT Digital vs. Vincom Retail JSC | FPT Digital vs. PC3 Investment JSC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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