Correlation Between Fine Besteel and Settlebank
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Settlebank 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 Settlebank 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 Settlebank, you can compare the effects of market volatilities on Fine Besteel and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Settlebank.
Diversification Opportunities for Fine Besteel and Settlebank
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and Settlebank is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of Fine Besteel i.e., Fine Besteel and Settlebank go up and down completely randomly.
Pair Corralation between Fine Besteel and Settlebank
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.71 times more return on investment than Settlebank. However, Fine Besteel is 1.71 times more volatile than Settlebank. It trades about 0.25 of its potential returns per unit of risk. Settlebank is currently generating about -0.06 per unit of risk. If you would invest 85,400 in Fine Besteel Co on August 25, 2024 and sell it today you would earn a total of 22,800 from holding Fine Besteel Co or generate 26.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Settlebank
Performance |
| Timeline |
| Fine Besteel |
| Settlebank |
Fine Besteel and Settlebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Settlebank
The main advantage of trading using opposite Fine Besteel and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.| Fine Besteel vs. AptaBio Therapeutics | Fine Besteel vs. Daewoo SBI SPAC | Fine Besteel vs. Dream Security co | Fine Besteel vs. Microfriend |
| Settlebank vs. Playgram Co | Settlebank vs. MediaZen | Settlebank vs. DC Media Co | Settlebank vs. Woori 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |