Correlation Between FIT INVEST and Transport
Can any of the company-specific risk be diversified away by investing in both FIT INVEST and Transport 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 Transport 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 Transport and Industry, you can compare the effects of market volatilities on FIT INVEST and Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIT INVEST and Transport.
Diversification Opportunities for FIT INVEST and Transport
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIT and Transport is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FIT INVEST JSC and Transport and Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport and Industry 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport and Industry has no effect on the direction of FIT INVEST i.e., FIT INVEST and Transport go up and down completely randomly.
Pair Corralation between FIT INVEST and Transport
Assuming the 90 days trading horizon FIT INVEST is expected to generate 3.07 times less return on investment than Transport. But when comparing it to its historical volatility, FIT INVEST JSC is 2.54 times less risky than Transport. It trades about 0.15 of its potential returns per unit of risk. Transport and Industry is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 189,000 in Transport and Industry on April 24, 2025 and sell it today you would earn a total of 87,000 from holding Transport and Industry or generate 46.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
FIT INVEST JSC vs. Transport and Industry
Performance |
Timeline |
FIT INVEST JSC |
Transport and Industry |
FIT INVEST and Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIT INVEST and Transport
The main advantage of trading using opposite FIT INVEST and Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIT INVEST position performs unexpectedly, Transport 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 Transport will offset losses from the drop in Transport's long position.FIT INVEST vs. Nafoods Group JSC | FIT INVEST vs. Military Insurance Corp | FIT INVEST vs. Vietnam Technological And | FIT INVEST vs. Vietnam JSCmmercial Bank |
Transport vs. Petrovietnam Technical Services | Transport vs. Vu Dang Investment | Transport vs. Innovative Technology Development | Transport vs. Saigon Viendong Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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