Correlation Between Vnsteel Vicasa and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Vnsteel Vicasa 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 Vnsteel Vicasa and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vnsteel Vicasa JSC and FIT INVEST JSC, you can compare the effects of market volatilities on Vnsteel Vicasa 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 Vnsteel Vicasa with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vnsteel Vicasa and FIT INVEST.
Diversification Opportunities for Vnsteel Vicasa and FIT INVEST
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vnsteel and FIT is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vnsteel Vicasa JSC 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 Vnsteel Vicasa 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 Vnsteel Vicasa JSC 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 Vnsteel Vicasa i.e., Vnsteel Vicasa and FIT INVEST go up and down completely randomly.
Pair Corralation between Vnsteel Vicasa and FIT INVEST
Assuming the 90 days trading horizon Vnsteel Vicasa JSC is expected to under-perform the FIT INVEST. In addition to that, Vnsteel Vicasa is 4.42 times more volatile than FIT INVEST JSC. It trades about -0.13 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.29 per unit of volatility. If you would invest 422,000 in FIT INVEST JSC on October 24, 2024 and sell it today you would lose (18,000) from holding FIT INVEST JSC or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vnsteel Vicasa JSC vs. FIT INVEST JSC
Performance |
| Timeline |
| Vnsteel Vicasa JSC |
| FIT INVEST JSC |
Vnsteel Vicasa and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vnsteel Vicasa and FIT INVEST
The main advantage of trading using opposite Vnsteel Vicasa and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vnsteel Vicasa 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.| Vnsteel Vicasa vs. Long Giang Investment | Vnsteel Vicasa vs. Din Capital Investment | Vnsteel Vicasa vs. Taseco Air Services | Vnsteel Vicasa vs. Hoang Huy Investment |
| FIT INVEST vs. Petrolimex Information Technology | FIT INVEST vs. Dinhvu Port Investment | FIT INVEST vs. TDT Investment and | FIT INVEST vs. HVC Investment and |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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