Correlation Between Fine Besteel and Interflex
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Interflex 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 Fine Besteel and Interflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Interflex Co, you can compare the effects of market volatilities on Fine Besteel and Interflex 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 Fine Besteel with a short position of Interflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Interflex.
Diversification Opportunities for Fine Besteel and Interflex
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fine and Interflex is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Interflex Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interflex and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with Interflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interflex has no effect on the direction of Fine Besteel i.e., Fine Besteel and Interflex go up and down completely randomly.
Pair Corralation between Fine Besteel and Interflex
Assuming the 90 days trading horizon Fine Besteel Co is expected to under-perform the Interflex. But the stock apears to be less risky and, when comparing its historical volatility, Fine Besteel Co is 1.26 times less risky than Interflex. The stock trades about -0.05 of its potential returns per unit of risk. The Interflex Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,051,000 in Interflex Co on September 12, 2024 and sell it today you would lose (234,000) from holding Interflex Co or give up 22.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Interflex Co
Performance |
| Timeline |
| Fine Besteel |
| Interflex |
Fine Besteel and Interflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Interflex
The main advantage of trading using opposite Fine Besteel and Interflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Interflex 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 Interflex will offset losses from the drop in Interflex's long position.| Fine Besteel vs. Samsung Electronics Co | Fine Besteel vs. Samsung Electronics Co | Fine Besteel vs. SK Hynix | Fine Besteel vs. POSCO Holdings |
| Interflex vs. Cube Entertainment | Interflex vs. Dreamus Company | Interflex vs. LG Energy Solution | Interflex vs. Dongwon System |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |