Correlation Between Vu Dang and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Vu Dang 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 Vu Dang and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vu Dang Investment and FIT INVEST JSC, you can compare the effects of market volatilities on Vu Dang 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 Vu Dang with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vu Dang and FIT INVEST.
Diversification Opportunities for Vu Dang and FIT INVEST
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVD and FIT is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vu Dang 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 Vu Dang 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 Vu Dang 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 Vu Dang i.e., Vu Dang and FIT INVEST go up and down completely randomly.
Pair Corralation between Vu Dang and FIT INVEST
Assuming the 90 days trading horizon Vu Dang is expected to generate 1.47 times less return on investment than FIT INVEST. In addition to that, Vu Dang is 1.53 times more volatile than FIT INVEST JSC. It trades about 0.17 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.39 per unit of volatility. If you would invest 403,000 in FIT INVEST JSC on December 1, 2024 and sell it today you would earn a total of 27,000 from holding FIT INVEST JSC or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vu Dang Investment vs. FIT INVEST JSC
Performance |
| Timeline |
| Vu Dang Investment |
| FIT INVEST JSC |
Vu Dang and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vu Dang and FIT INVEST
The main advantage of trading using opposite Vu Dang and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vu Dang 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.| Vu Dang vs. Fecon Mining JSC | Vu Dang vs. Vietnam Airlines JSC | Vu Dang vs. Tay Ninh Rubber | Vu Dang vs. Phuoc Hoa Rubber |
| FIT INVEST vs. Asia Pacific Investment | FIT INVEST vs. Travel Investment and | FIT INVEST vs. Sea Air Freight | FIT INVEST vs. Ha Noi Education |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |