Correlation Between Saigon Beer and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Saigon Beer 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 Saigon Beer and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saigon Beer Alcohol and FIT INVEST JSC, you can compare the effects of market volatilities on Saigon Beer 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 Saigon Beer with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Beer and FIT INVEST.
Diversification Opportunities for Saigon Beer and FIT INVEST
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saigon and FIT is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Beer Alcohol 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 Saigon Beer 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 Saigon Beer Alcohol 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 Saigon Beer i.e., Saigon Beer and FIT INVEST go up and down completely randomly.
Pair Corralation between Saigon Beer and FIT INVEST
Assuming the 90 days trading horizon Saigon Beer Alcohol is expected to under-perform the FIT INVEST. But the stock apears to be less risky and, when comparing its historical volatility, Saigon Beer Alcohol is 1.05 times less risky than FIT INVEST. The stock trades about -0.03 of its potential returns per unit of risk. The FIT INVEST JSC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 432,000 in FIT INVEST JSC on August 25, 2024 and sell it today you would lose (17,000) from holding FIT INVEST JSC or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saigon Beer Alcohol vs. FIT INVEST JSC
Performance |
| Timeline |
| Saigon Beer Alcohol |
| FIT INVEST JSC |
Saigon Beer and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Beer and FIT INVEST
The main advantage of trading using opposite Saigon Beer and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Beer 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.| Saigon Beer vs. FIT INVEST JSC | Saigon Beer vs. Damsan JSC | Saigon Beer vs. An Phat Plastic | Saigon Beer vs. APG Securities Joint |
| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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