Correlation Between FIT INVEST and Tin Nghia
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Tin Nghia 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 Tin Nghia 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 Tin Nghia Industrial, you can compare the effects of market volatilities on FIT INVEST and Tin Nghia 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 Tin Nghia. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Tin Nghia.
Diversification Opportunities for FIT INVEST and Tin Nghia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIT and Tin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Tin Nghia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tin Nghia Industrial 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 Tin Nghia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tin Nghia Industrial has no effect on the direction of FIT INVEST i.e., FIT INVEST and Tin Nghia go up and down completely randomly.
Pair Corralation between FIT INVEST and Tin Nghia
Assuming the 90 days trading horizon FIT INVEST JSC is expected to under-perform the Tin Nghia. But the stock apears to be less risky and, when comparing its historical volatility, FIT INVEST JSC is 1.45 times less risky than Tin Nghia. The stock trades about 0.0 of its potential returns per unit of risk. The Tin Nghia Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,235,726 in Tin Nghia Industrial on December 3, 2024 and sell it today you would earn a total of 34,274 from holding Tin Nghia Industrial or generate 1.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FIT INVEST JSC vs. Tin Nghia Industrial
Performance |
Timeline |
FIT INVEST JSC |
Tin Nghia Industrial |
FIT INVEST and Tin Nghia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIT INVEST and Tin Nghia
The main advantage of trading using opposite FIT INVEST and Tin Nghia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Tin Nghia 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 Tin Nghia will offset losses from the drop in Tin Nghia's long position.FIT INVEST vs. Riverway Management JSC | FIT INVEST vs. Construction And Investment | FIT INVEST vs. PC3 Investment JSC | FIT INVEST vs. PV2 Investment JSC |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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