Correlation Between Lien Viet and FIT INVEST

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

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

Diversification Opportunities for Lien Viet and FIT INVEST

0.0

Correlation Coefficient

Lien Viet  FIT INVEST

Pay attention - limited upside

The 3 months correlation between Lien and FIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lien Viet Post 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 Lien Viet 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 Lien Viet Post 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 Lien Viet i.e., Lien Viet and FIT INVEST go up and down completely randomly.

Pair Corralation between Lien Viet and FIT INVEST

If you would invest  0.00  in Lien Viet Post on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Lien Viet Post or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Lien Viet Post  vs.  FIT INVEST JSC

Lien Viet Post

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lien Viet Post has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Lien Viet is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

FIT INVEST JSC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIT INVEST JSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Lien Viet and FIT INVEST

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.