Correlation Between Transimex Transportation and FPT Corp
Can any of the company-specific risk be diversified away by investing in both Transimex Transportation and FPT Corp 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 Transimex Transportation and FPT Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transimex Transportation JSC and FPT Corp, you can compare the effects of market volatilities on Transimex Transportation and FPT Corp 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 Transimex Transportation with a short position of FPT Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transimex Transportation and FPT Corp.
Diversification Opportunities for Transimex Transportation and FPT Corp
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transimex and FPT is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Transimex Transportation JSC and FPT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Corp and Transimex Transportation 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 Transimex Transportation JSC are associated (or correlated) with FPT Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Corp has no effect on the direction of Transimex Transportation i.e., Transimex Transportation and FPT Corp go up and down completely randomly.
Pair Corralation between Transimex Transportation and FPT Corp
Assuming the 90 days trading horizon Transimex Transportation JSC is expected to under-perform the FPT Corp. In addition to that, Transimex Transportation is 1.72 times more volatile than FPT Corp. It trades about -0.07 of its total potential returns per unit of risk. FPT Corp is currently generating about -0.09 per unit of volatility. If you would invest 14,990,000 in FPT Corp on October 17, 2024 and sell it today you would lose (230,000) from holding FPT Corp or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Transimex Transportation JSC vs. FPT Corp
Performance |
| Timeline |
| Transimex Transportation |
| FPT Corp |
Transimex Transportation and FPT Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transimex Transportation and FPT Corp
The main advantage of trading using opposite Transimex Transportation and FPT Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transimex Transportation position performs unexpectedly, FPT Corp 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 FPT Corp will offset losses from the drop in FPT Corp's long position.| Transimex Transportation vs. Saigon Beer Alcohol | Transimex Transportation vs. CEO Group JSC | Transimex Transportation vs. Picomat Plastic JSC | Transimex Transportation vs. Tien Phong Plastic |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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