Correlation Between Vietnam Dairy and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Vietnam Dairy 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 Vietnam Dairy and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vietnam Dairy Products and FIT INVEST JSC, you can compare the effects of market volatilities on Vietnam Dairy 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 Vietnam Dairy with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vietnam Dairy and FIT INVEST.
Diversification Opportunities for Vietnam Dairy and FIT INVEST
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vietnam and FIT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vietnam Dairy Products 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 Vietnam Dairy 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 Vietnam Dairy Products 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 Vietnam Dairy i.e., Vietnam Dairy and FIT INVEST go up and down completely randomly.
Pair Corralation between Vietnam Dairy and FIT INVEST
Assuming the 90 days trading horizon Vietnam Dairy Products is expected to under-perform the FIT INVEST. But the stock apears to be less risky and, when comparing its historical volatility, Vietnam Dairy Products is 1.95 times less risky than FIT INVEST. The stock trades about -0.02 of its potential returns per unit of risk. The FIT INVEST JSC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 380,000 in FIT INVEST JSC on August 28, 2024 and sell it today you would earn a total of 38,000 from holding FIT INVEST JSC or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Vietnam Dairy Products vs. FIT INVEST JSC
Performance |
| Timeline |
| Vietnam Dairy Products |
| FIT INVEST JSC |
Vietnam Dairy and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vietnam Dairy and FIT INVEST
The main advantage of trading using opposite Vietnam Dairy and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vietnam Dairy 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.| Vietnam Dairy vs. Ha Long Investment | Vietnam Dairy vs. Development Investment Construction | Vietnam Dairy vs. MST Investment JSC | Vietnam Dairy vs. Tien Giang Investment |
| FIT INVEST vs. Damsan JSC | FIT INVEST vs. An Phat Plastic | FIT INVEST vs. APG Securities Joint | FIT INVEST vs. Binhthuan Agriculture Services |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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