Correlation Between FIT INVEST and Viet Thanh
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Viet Thanh 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 Viet Thanh 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 Viet Thanh Plastic, you can compare the effects of market volatilities on FIT INVEST and Viet Thanh 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 Viet Thanh. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Viet Thanh.
Diversification Opportunities for FIT INVEST and Viet Thanh
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIT and Viet is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Viet Thanh Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viet Thanh Plastic 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 Viet Thanh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viet Thanh Plastic has no effect on the direction of FIT INVEST i.e., FIT INVEST and Viet Thanh go up and down completely randomly.
Pair Corralation between FIT INVEST and Viet Thanh
Assuming the 90 days trading horizon FIT INVEST JSC is expected to generate 0.42 times more return on investment than Viet Thanh. However, FIT INVEST JSC is 2.41 times less risky than Viet Thanh. It trades about 0.38 of its potential returns per unit of risk. Viet Thanh Plastic is currently generating about 0.01 per unit of risk. If you would invest 403,000 in FIT INVEST JSC on December 2, 2024 and sell it today you would earn a total of 27,000 from holding FIT INVEST JSC or generate 6.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
FIT INVEST JSC vs. Viet Thanh Plastic
Performance |
Timeline |
FIT INVEST JSC |
Viet Thanh Plastic |
FIT INVEST and Viet Thanh Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIT INVEST and Viet Thanh
The main advantage of trading using opposite FIT INVEST and Viet Thanh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Viet Thanh 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 Viet Thanh will offset losses from the drop in Viet Thanh's long position.FIT INVEST vs. Vincom Retail JSC | FIT INVEST vs. Nafoods Group JSC | FIT INVEST vs. Petrolimex Insurance Corp | FIT INVEST vs. Vietnam Dairy Products |
Viet Thanh vs. Binhthuan Agriculture Services | Viet Thanh vs. South Basic Chemicals | Viet Thanh vs. Construction JSC No5 | Viet Thanh vs. Fecon Mining JSC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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