Correlation Between FATFISH GROUP and FIRST NATIONAL
Can any of the company-specific risk be diversified away by investing in both FATFISH GROUP and FIRST NATIONAL 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 FATFISH GROUP and FIRST NATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FATFISH GROUP LTD and FIRST NATIONAL FIN, you can compare the effects of market volatilities on FATFISH GROUP and FIRST NATIONAL 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 FATFISH GROUP with a short position of FIRST NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FATFISH GROUP and FIRST NATIONAL.
Diversification Opportunities for FATFISH GROUP and FIRST NATIONAL
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FATFISH and FIRST is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding FATFISH GROUP LTD and FIRST NATIONAL FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST NATIONAL FIN and FATFISH GROUP 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 FATFISH GROUP LTD are associated (or correlated) with FIRST NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST NATIONAL FIN has no effect on the direction of FATFISH GROUP i.e., FATFISH GROUP and FIRST NATIONAL go up and down completely randomly.
Pair Corralation between FATFISH GROUP and FIRST NATIONAL
Assuming the 90 days horizon FATFISH GROUP LTD is expected to generate 7.49 times more return on investment than FIRST NATIONAL. However, FATFISH GROUP is 7.49 times more volatile than FIRST NATIONAL FIN. It trades about 0.1 of its potential returns per unit of risk. FIRST NATIONAL FIN is currently generating about 0.32 per unit of risk. If you would invest 0.45 in FATFISH GROUP LTD on August 30, 2024 and sell it today you would earn a total of 0.05 from holding FATFISH GROUP LTD or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FATFISH GROUP LTD vs. FIRST NATIONAL FIN
Performance |
| Timeline |
| FATFISH GROUP LTD |
| FIRST NATIONAL FIN |
FATFISH GROUP and FIRST NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FATFISH GROUP and FIRST NATIONAL
The main advantage of trading using opposite FATFISH GROUP and FIRST NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FATFISH GROUP position performs unexpectedly, FIRST NATIONAL 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 FIRST NATIONAL will offset losses from the drop in FIRST NATIONAL's long position.| FATFISH GROUP vs. Ming Le Sports | FATFISH GROUP vs. JD SPORTS FASH | FATFISH GROUP vs. Playtech plc | FATFISH GROUP vs. TSOGO SUN GAMING |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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