Correlation Between Van Dien and FPT CAPITAL
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By analyzing existing cross correlation between Van Dien Fused and FPT CAPITAL VNX50, you can compare the effects of market volatilities on Van Dien and FPT CAPITAL 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 Van Dien with a short position of FPT CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Van Dien and FPT CAPITAL.
Diversification Opportunities for Van Dien and FPT CAPITAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Van and FPT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Van Dien Fused and FPT CAPITAL VNX50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPT CAPITAL VNX50 and Van Dien 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 Van Dien Fused are associated (or correlated) with FPT CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPT CAPITAL VNX50 has no effect on the direction of Van Dien i.e., Van Dien and FPT CAPITAL go up and down completely randomly.
Pair Corralation between Van Dien and FPT CAPITAL
Assuming the 90 days trading horizon Van Dien Fused is expected to generate 1.32 times more return on investment than FPT CAPITAL. However, Van Dien is 1.32 times more volatile than FPT CAPITAL VNX50. It trades about 0.03 of its potential returns per unit of risk. FPT CAPITAL VNX50 is currently generating about -0.08 per unit of risk. If you would invest 1,395,000 in Van Dien Fused on September 15, 2024 and sell it today you would earn a total of 5,000 from holding Van Dien Fused or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Van Dien Fused vs. FPT CAPITAL VNX50
Performance |
| Timeline |
| Van Dien Fused |
| FPT CAPITAL VNX50 |
Van Dien and FPT CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Van Dien and FPT CAPITAL
The main advantage of trading using opposite Van Dien and FPT CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Van Dien position performs unexpectedly, FPT CAPITAL 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 CAPITAL will offset losses from the drop in FPT CAPITAL's long position.| Van Dien vs. Song Hong Garment | Van Dien vs. Alphanam ME | Van Dien vs. Hochiminh City Metal | Van Dien vs. Atesco Industrial Cartering |
| FPT CAPITAL vs. Van Dien Fused | FPT CAPITAL vs. Idico JSC | FPT CAPITAL vs. Song Hong Garment | FPT CAPITAL vs. Vietnam Medicinal Materials |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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