Correlation Between Pacific Petroleum and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Pacific Petroleum 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 Pacific Petroleum and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Petroleum Transportation and FIT INVEST JSC, you can compare the effects of market volatilities on Pacific Petroleum 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 Pacific Petroleum with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Petroleum and FIT INVEST.
Diversification Opportunities for Pacific Petroleum and FIT INVEST
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pacific and FIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Petroleum Transportati 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 Pacific Petroleum 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 Pacific Petroleum Transportation 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 Pacific Petroleum i.e., Pacific Petroleum and FIT INVEST go up and down completely randomly.
Pair Corralation between Pacific Petroleum and FIT INVEST
Assuming the 90 days trading horizon Pacific Petroleum Transportation is expected to under-perform the FIT INVEST. In addition to that, Pacific Petroleum is 1.0 times more volatile than FIT INVEST JSC. It trades about -0.08 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.0 per unit of volatility. If you would invest 422,000 in FIT INVEST JSC on August 31, 2024 and sell it today you would lose (2,000) from holding FIT INVEST JSC or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Petroleum Transportati vs. FIT INVEST JSC
Performance |
| Timeline |
| Pacific Petroleum |
| FIT INVEST JSC |
Pacific Petroleum and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Petroleum and FIT INVEST
The main advantage of trading using opposite Pacific Petroleum and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Petroleum 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.| Pacific Petroleum vs. Taseco Air Services | Pacific Petroleum vs. Industrial Urban Development | Pacific Petroleum vs. RangDong Plastic JSC | Pacific Petroleum vs. Sao Vang Rubber |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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