Correlation Between Techno Agricultural and FPT Digital
Can any of the company-specific risk be diversified away by investing in both Techno Agricultural and FPT Digital 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 FPT Digital 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 FPT Digital Retail, you can compare the effects of market volatilities on Techno Agricultural and FPT Digital 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 FPT Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techno Agricultural and FPT Digital.
Diversification Opportunities for Techno Agricultural and FPT Digital
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Techno and FPT is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Techno Agricultural Supplying and FPT Digital Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT Digital Retail 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 FPT Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT Digital Retail has no effect on the direction of Techno Agricultural i.e., Techno Agricultural and FPT Digital go up and down completely randomly.
Pair Corralation between Techno Agricultural and FPT Digital
Assuming the 90 days trading horizon Techno Agricultural Supplying is expected to under-perform the FPT Digital. But the stock apears to be less risky and, when comparing its historical volatility, Techno Agricultural Supplying is 1.46 times less risky than FPT Digital. The stock trades about -0.02 of its potential returns per unit of risk. The FPT Digital Retail is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 18,680,000 in FPT Digital Retail on November 2, 2024 and sell it today you would earn a total of 1,920,000 from holding FPT Digital Retail or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techno Agricultural Supplying vs. FPT Digital Retail
Performance |
| Timeline |
| Techno Agricultural |
| FPT Digital Retail |
Techno Agricultural and FPT Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techno Agricultural and FPT Digital
The main advantage of trading using opposite Techno Agricultural and FPT Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techno Agricultural position performs unexpectedly, FPT Digital 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 Digital will offset losses from the drop in FPT Digital's long position.| Techno Agricultural vs. Petrolimex International Trading | Techno Agricultural vs. Petrovietnam Drilling Mud | Techno Agricultural vs. Vinhomes JSC | Techno Agricultural vs. Pacific Petroleum Transportation |
| FPT Digital vs. Hanoi Beer Alcohol | FPT Digital vs. Saigon Viendong Technology | FPT Digital vs. Investment and Industrial | FPT Digital vs. Nafoods Group JSC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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