Correlation Between VTC Telecommunicatio and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both VTC Telecommunicatio 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 VTC Telecommunicatio and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VTC Telecommunications JSC and FIT INVEST JSC, you can compare the effects of market volatilities on VTC Telecommunicatio 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 VTC Telecommunicatio with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTC Telecommunicatio and FIT INVEST.
Diversification Opportunities for VTC Telecommunicatio and FIT INVEST
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between VTC and FIT is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding VTC Telecommunications 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 VTC Telecommunicatio 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 VTC Telecommunications 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 VTC Telecommunicatio i.e., VTC Telecommunicatio and FIT INVEST go up and down completely randomly.
Pair Corralation between VTC Telecommunicatio and FIT INVEST
Assuming the 90 days trading horizon VTC Telecommunications JSC is expected to generate 2.58 times more return on investment than FIT INVEST. However, VTC Telecommunicatio is 2.58 times more volatile than FIT INVEST JSC. It trades about 0.04 of its potential returns per unit of risk. FIT INVEST JSC is currently generating about -0.1 per unit of risk. If you would invest 830,000 in VTC Telecommunications JSC on August 30, 2024 and sell it today you would earn a total of 20,000 from holding VTC Telecommunications JSC or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.64% |
| Values | Daily Returns |
VTC Telecommunications JSC vs. FIT INVEST JSC
Performance |
| Timeline |
| VTC Telecommunications |
| FIT INVEST JSC |
VTC Telecommunicatio and FIT INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VTC Telecommunicatio and FIT INVEST
The main advantage of trading using opposite VTC Telecommunicatio and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTC Telecommunicatio 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.| VTC Telecommunicatio vs. PetroVietnam Transportation Corp | VTC Telecommunicatio vs. Travel Investment and | VTC Telecommunicatio vs. Nam Long Investment | VTC Telecommunicatio vs. Ba Ria Thermal |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |