Correlation Between Saigon Viendong and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Saigon Viendong 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 Viendong 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 Viendong Technology and FIT INVEST JSC, you can compare the effects of market volatilities on Saigon Viendong 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 Viendong with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saigon Viendong and FIT INVEST.
Diversification Opportunities for Saigon Viendong and FIT INVEST
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saigon and FIT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Saigon Viendong Technology 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 Viendong 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 Viendong Technology 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 Viendong i.e., Saigon Viendong and FIT INVEST go up and down completely randomly.
Pair Corralation between Saigon Viendong and FIT INVEST
Assuming the 90 days trading horizon Saigon Viendong Technology is expected to generate 2.5 times more return on investment than FIT INVEST. However, Saigon Viendong is 2.5 times more volatile than FIT INVEST JSC. It trades about 0.04 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.12 per unit of risk. If you would invest 1,145,000 in Saigon Viendong Technology on November 2, 2024 and sell it today you would earn a total of 45,000 from holding Saigon Viendong Technology or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.67% |
| Values | Daily Returns |
Saigon Viendong Technology vs. FIT INVEST JSC
Performance |
| Timeline |
| Saigon Viendong Tech |
| FIT INVEST JSC |
Saigon Viendong and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saigon Viendong and FIT INVEST
The main advantage of trading using opposite Saigon Viendong and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saigon Viendong 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 Viendong vs. PostTelecommunication Equipment | Saigon Viendong vs. Vietnam Airlines JSC | Saigon Viendong vs. Elcom Technology Communications | Saigon Viendong vs. Vincom Retail JSC |
| FIT INVEST vs. BIDV Insurance Corp | FIT INVEST vs. Investment and Industrial | FIT INVEST vs. Hochiminh City Metal | FIT INVEST vs. Saigon Viendong Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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