Correlation Between Centaur Bci and FNB ETN
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By analyzing existing cross correlation between Centaur Bci Balanced and FNB ETN on, you can compare the effects of market volatilities on Centaur Bci and FNB ETN 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 Centaur Bci with a short position of FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and FNB ETN.
Diversification Opportunities for Centaur Bci and FNB ETN
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Centaur and FNB is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and FNB ETN on in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN on and Centaur Bci 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 Centaur Bci Balanced are associated (or correlated) with FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN on has no effect on the direction of Centaur Bci i.e., Centaur Bci and FNB ETN go up and down completely randomly.
Pair Corralation between Centaur Bci and FNB ETN
Assuming the 90 days trading horizon Centaur Bci is expected to generate 5.94 times less return on investment than FNB ETN. But when comparing it to its historical volatility, Centaur Bci Balanced is 5.83 times less risky than FNB ETN. It trades about 0.17 of its potential returns per unit of risk. FNB ETN on is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 167,100 in FNB ETN on on August 28, 2024 and sell it today you would earn a total of 6,300 from holding FNB ETN on or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Centaur Bci Balanced vs. FNB ETN on
Performance |
| Timeline |
| Centaur Bci Balanced |
| FNB ETN on |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Centaur Bci and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and FNB ETN
The main advantage of trading using opposite Centaur Bci and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. AfricaRhodium ETF | Centaur Bci vs. CoreShares Preference Share |
| FNB ETN vs. Centaur Bci Balanced | FNB ETN vs. Sabvest Capital | FNB ETN vs. Growthpoint Properties | FNB ETN vs. AfricaRhodium ETF |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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