Correlation Between FRASERS PROPERTY and NEW WORLD
Can any of the company-specific risk be diversified away by investing in both FRASERS PROPERTY and NEW WORLD 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 FRASERS PROPERTY and NEW WORLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRASERS PROPERTY and NEW WORLD DEVCO, you can compare the effects of market volatilities on FRASERS PROPERTY and NEW WORLD 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 FRASERS PROPERTY with a short position of NEW WORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRASERS PROPERTY and NEW WORLD.
Diversification Opportunities for FRASERS PROPERTY and NEW WORLD
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FRASERS and NEW is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FRASERS PROPERTY and NEW WORLD DEVCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW WORLD DEVCO and FRASERS PROPERTY 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 FRASERS PROPERTY are associated (or correlated) with NEW WORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW WORLD DEVCO has no effect on the direction of FRASERS PROPERTY i.e., FRASERS PROPERTY and NEW WORLD go up and down completely randomly.
Pair Corralation between FRASERS PROPERTY and NEW WORLD
Assuming the 90 days horizon FRASERS PROPERTY is expected to generate 0.53 times more return on investment than NEW WORLD. However, FRASERS PROPERTY is 1.9 times less risky than NEW WORLD. It trades about 0.02 of its potential returns per unit of risk. NEW WORLD DEVCO is currently generating about -0.04 per unit of risk. If you would invest 58.00 in FRASERS PROPERTY on September 24, 2024 and sell it today you would earn a total of 5.00 from holding FRASERS PROPERTY or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRASERS PROPERTY vs. NEW WORLD DEVCO
Performance |
| Timeline |
| FRASERS PROPERTY |
| NEW WORLD DEVCO |
FRASERS PROPERTY and NEW WORLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRASERS PROPERTY and NEW WORLD
The main advantage of trading using opposite FRASERS PROPERTY and NEW WORLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRASERS PROPERTY position performs unexpectedly, NEW WORLD 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 NEW WORLD will offset losses from the drop in NEW WORLD's long position.| FRASERS PROPERTY vs. NEW WORLD DEVCO | FRASERS PROPERTY vs. OPEN HOUSE GROUP | FRASERS PROPERTY vs. AEON MALL LTD | FRASERS PROPERTY vs. Hufvudstaden AB |
| NEW WORLD vs. OPEN HOUSE GROUP | NEW WORLD vs. AEON MALL LTD | NEW WORLD vs. Hufvudstaden AB | NEW WORLD vs. FRASERS PROPERTY |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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