Correlation Between VietinBank Securities and FIT INVEST

Can any of the company-specific risk be diversified away by investing in both VietinBank Securities 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 VietinBank Securities and FIT INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VietinBank Securities JSC and FIT INVEST JSC, you can compare the effects of market volatilities on VietinBank Securities 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 VietinBank Securities with a short position of FIT INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of VietinBank Securities and FIT INVEST.

Diversification Opportunities for VietinBank Securities and FIT INVEST

0.7

Correlation Coefficient

VietinBank Securities  FIT INVEST

Poor diversification

The 3 months correlation between VietinBank and FIT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding VietinBank Securities 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 VietinBank Securities 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 VietinBank Securities 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 VietinBank Securities i.e., VietinBank Securities and FIT INVEST go up and down completely randomly.

Pair Corralation between VietinBank Securities and FIT INVEST

Assuming the 90 days trading horizon VietinBank Securities is expected to generate 1.08 times less return on investment than FIT INVEST. In addition to that, VietinBank Securities is 1.18 times more volatile than FIT INVEST JSC. It trades about 0.11 of its total potential returns per unit of risk. FIT INVEST JSC is currently generating about 0.14 per unit of volatility. If you would invest  421,000  in FIT INVEST JSC on December 29, 2024 and sell it today you would earn a total of  44,000  from holding FIT INVEST JSC or generate 10.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

VietinBank Securities JSC  vs.  FIT INVEST JSC

VietinBank Securities JSC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VietinBank Securities JSC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, VietinBank Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

FIT INVEST JSC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FIT INVEST JSC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, FIT INVEST may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with VietinBank Securities and FIT INVEST

The main advantage of trading using opposite VietinBank Securities and FIT INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VietinBank Securities 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.

The idea behind VietinBank Securities JSC and FIT INVEST JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.