Correlation Between Techno Agricultural and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural 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 Techno Agricultural and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techno Agricultural Supplying and FIT INVEST JSC, you can compare the effects of market volatilities on Techno Agricultural 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 Techno Agricultural with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and FIT INVEST.
Diversification Opportunities for Techno Agricultural and FIT INVEST
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Techno and FIT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying 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 Techno Agricultural 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 Techno Agricultural Supplying 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 Techno Agricultural i.e., Techno Agricultural and FIT INVEST go up and down completely randomly.
Pair Corralation between Techno Agricultural and FIT INVEST
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to under-perform the FIT INVEST. In addition to that, Techno Agricultural is 1.09 times more volatile than FIT INVEST JSC. It trades about -0.1 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.04 per unit of volatility. If you would invest 432,000 in FIT INVEST JSC on August 28, 2024 and sell it today you would lose (16,000) from holding FIT INVEST JSC or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. FIT INVEST JSC
Performance |
| Timeline |
| Techno Agricultural |
| FIT INVEST JSC |
Techno Agricultural and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and FIT INVEST
The main advantage of trading using opposite Techno Agricultural and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural 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.| Techno Agricultural vs. Long An Food | Techno Agricultural vs. Ducgiang Chemicals Detergent | Techno Agricultural vs. MST Investment JSC | Techno Agricultural vs. Construction And Investment |
| FIT INVEST vs. Hanoi Plastics JSC | FIT INVEST vs. Vietnam Rubber Group | FIT INVEST vs. PVI Reinsurance Corp | FIT INVEST vs. Pacific Petroleum Transportation |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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