Correlation Between Tri Viet and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Tri Viet 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 Tri Viet and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tri Viet Management and FIT INVEST JSC, you can compare the effects of market volatilities on Tri Viet 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 Tri Viet with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tri Viet and FIT INVEST.
Diversification Opportunities for Tri Viet and FIT INVEST
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tri and FIT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Tri Viet Management 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 Tri Viet 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 Tri Viet Management 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 Tri Viet i.e., Tri Viet and FIT INVEST go up and down completely randomly.
Pair Corralation between Tri Viet and FIT INVEST
Assuming the 90 days trading horizon Tri Viet Management is expected to generate 3.28 times more return on investment than FIT INVEST. However, Tri Viet is 3.28 times more volatile than FIT INVEST JSC. It trades about 0.03 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.2 per unit of risk. If you would invest 990,000 in Tri Viet Management on August 31, 2024 and sell it today you would earn a total of 10,000 from holding Tri Viet Management or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tri Viet Management vs. FIT INVEST JSC
Performance |
| Timeline |
| Tri Viet Management |
| FIT INVEST JSC |
Tri Viet and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tri Viet and FIT INVEST
The main advantage of trading using opposite Tri Viet and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tri Viet 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.| Tri Viet vs. FIT INVEST JSC | Tri Viet vs. Damsan JSC | Tri Viet vs. An Phat Plastic | Tri Viet vs. Alphanam ME |
| FIT INVEST vs. Plastic Additives JSC | FIT INVEST vs. Picomat Plastic JSC | FIT INVEST vs. Hanoi Beer Alcohol | FIT INVEST vs. Military Insurance Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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