Correlation Between Din Capital and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Din Capital 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 Din Capital and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Din Capital Investment and FIT INVEST JSC, you can compare the effects of market volatilities on Din Capital 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 Din Capital with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Din Capital and FIT INVEST.
Diversification Opportunities for Din Capital and FIT INVEST
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Din and FIT is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Din Capital Investment 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 Din Capital 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 Din Capital Investment 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 Din Capital i.e., Din Capital and FIT INVEST go up and down completely randomly.
Pair Corralation between Din Capital and FIT INVEST
Assuming the 90 days trading horizon Din Capital Investment is expected to generate 1.25 times more return on investment than FIT INVEST. However, Din Capital is 1.25 times more volatile than FIT INVEST JSC. It trades about 0.01 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 1,019,048 in Din Capital Investment on August 31, 2024 and sell it today you would earn a total of 952.00 from holding Din Capital Investment or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.83% |
| Values | Daily Returns |
Din Capital Investment vs. FIT INVEST JSC
Performance |
| Timeline |
| Din Capital Investment |
| FIT INVEST JSC |
Din Capital and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Din Capital and FIT INVEST
The main advantage of trading using opposite Din Capital and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Din Capital 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.| Din Capital vs. FIT INVEST JSC | Din Capital vs. Damsan JSC | Din Capital vs. An Phat Plastic | Din Capital vs. Alphanam ME |
| FIT INVEST vs. Plastic Additives JSC | FIT INVEST vs. Picomat Plastic JSC | FIT INVEST vs. Hanoi Beer Alcohol | FIT INVEST vs. Military Insurance Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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