Correlation Between Tien Giang and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Tien Giang 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 Tien Giang and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tien Giang Investment and FIT INVEST JSC, you can compare the effects of market volatilities on Tien Giang 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 Tien Giang with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tien Giang and FIT INVEST.
Diversification Opportunities for Tien Giang and FIT INVEST
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tien and FIT is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tien Giang 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 Tien Giang 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 Tien Giang 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 Tien Giang i.e., Tien Giang and FIT INVEST go up and down completely randomly.
Pair Corralation between Tien Giang and FIT INVEST
Assuming the 90 days trading horizon Tien Giang Investment is expected to generate 0.75 times more return on investment than FIT INVEST. However, Tien Giang Investment is 1.34 times less risky than FIT INVEST. It trades about -0.02 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.1 per unit of risk. If you would invest 4,400,000 in Tien Giang Investment on August 28, 2024 and sell it today you would lose (20,000) from holding Tien Giang Investment or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tien Giang Investment vs. FIT INVEST JSC
Performance |
| Timeline |
| Tien Giang Investment |
| FIT INVEST JSC |
Tien Giang and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tien Giang and FIT INVEST
The main advantage of trading using opposite Tien Giang and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tien Giang 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.| Tien Giang vs. FIT INVEST JSC | Tien Giang vs. Damsan JSC | Tien Giang vs. An Phat Plastic | Tien Giang 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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