Correlation Between Ben Thanh and FIT INVEST
Can any of the company-specific risk be diversified away by investing in both Ben Thanh 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 Ben Thanh and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ben Thanh Rubber and FIT INVEST JSC, you can compare the effects of market volatilities on Ben Thanh 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 Ben Thanh with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ben Thanh and FIT INVEST.
Diversification Opportunities for Ben Thanh and FIT INVEST
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ben and FIT is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ben Thanh Rubber 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 Ben Thanh 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 Ben Thanh Rubber 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 Ben Thanh i.e., Ben Thanh and FIT INVEST go up and down completely randomly.
Pair Corralation between Ben Thanh and FIT INVEST
Assuming the 90 days trading horizon Ben Thanh Rubber is expected to under-perform the FIT INVEST. In addition to that, Ben Thanh is 1.07 times more volatile than FIT INVEST JSC. It trades about 0.0 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.02 per unit of volatility. If you would invest 423,000 in FIT INVEST JSC on December 25, 2024 and sell it today you would earn a total of 3,000 from holding FIT INVEST JSC or generate 0.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.28% |
Values | Daily Returns |
Ben Thanh Rubber vs. FIT INVEST JSC
Performance |
Timeline |
Ben Thanh Rubber |
FIT INVEST JSC |
Ben Thanh and FIT INVEST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ben Thanh and FIT INVEST
The main advantage of trading using opposite Ben Thanh and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ben Thanh 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.Ben Thanh vs. Hochiminh City Metal | Ben Thanh vs. Investment and Industrial | Ben Thanh vs. Vietnam Petroleum Transport | Ben Thanh vs. Riverway Management JSC |
FIT INVEST vs. Dong Nai Plastic | FIT INVEST vs. Danang Rubber JSC | FIT INVEST vs. Ben Thanh Rubber | FIT INVEST vs. BIDV 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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