Correlation Between FIT INVEST and DOMESCO Medical
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and DOMESCO Medical 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 FIT INVEST and DOMESCO Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIT INVEST JSC and DOMESCO Medical Import, you can compare the effects of market volatilities on FIT INVEST and DOMESCO Medical 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 FIT INVEST with a short position of DOMESCO Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and DOMESCO Medical.
Diversification Opportunities for FIT INVEST and DOMESCO Medical
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIT and DOMESCO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and DOMESCO Medical Import in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMESCO Medical Import and FIT INVEST 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 FIT INVEST JSC are associated (or correlated) with DOMESCO Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMESCO Medical Import has no effect on the direction of FIT INVEST i.e., FIT INVEST and DOMESCO Medical go up and down completely randomly.
Pair Corralation between FIT INVEST and DOMESCO Medical
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.31 times more return on investment than DOMESCO Medical. However, FIT INVEST JSC is 3.23 times less risky than DOMESCO Medical. It trades about 0.07 of its potential returns per unit of risk. DOMESCO Medical Import is currently generating about 0.01 per unit of risk. If you would invest 421,000 in FIT INVEST JSC on December 28, 2024 and sell it today you would earn a total of 14,000 from holding FIT INVEST JSC or generate 3.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FIT INVEST JSC vs. DOMESCO Medical Import
Performance |
Timeline |
FIT INVEST JSC |
DOMESCO Medical Import |
FIT INVEST and DOMESCO Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIT INVEST and DOMESCO Medical
The main advantage of trading using opposite FIT INVEST and DOMESCO Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, DOMESCO Medical 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 DOMESCO Medical will offset losses from the drop in DOMESCO Medical's long position.FIT INVEST vs. Vincom Retail JSC | FIT INVEST vs. Cotec Construction JSC | FIT INVEST vs. Elcom Technology Communications | FIT INVEST vs. Techcom Vietnam REIT |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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