Correlation Between FATFISH GROUP and Webster Financial
Can any of the company-specific risk be diversified away by investing in both FATFISH GROUP and Webster Financial 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 Webster Financial 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 Webster Financial, you can compare the effects of market volatilities on FATFISH GROUP and Webster Financial 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 Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FATFISH GROUP and Webster Financial.
Diversification Opportunities for FATFISH GROUP and Webster Financial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FATFISH and Webster is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding FATFISH GROUP LTD and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial 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 Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of FATFISH GROUP i.e., FATFISH GROUP and Webster Financial go up and down completely randomly.
Pair Corralation between FATFISH GROUP and Webster Financial
Assuming the 90 days horizon FATFISH GROUP LTD is expected to generate 5.7 times more return on investment than Webster Financial. However, FATFISH GROUP is 5.7 times more volatile than Webster Financial. It trades about 0.05 of its potential returns per unit of risk. Webster Financial is currently generating about 0.07 per unit of risk. If you would invest 0.70 in FATFISH GROUP LTD on September 1, 2024 and sell it today you would lose (0.20) from holding FATFISH GROUP LTD or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FATFISH GROUP LTD vs. Webster Financial
Performance |
| Timeline |
| FATFISH GROUP LTD |
| Webster Financial |
FATFISH GROUP and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FATFISH GROUP and Webster Financial
The main advantage of trading using opposite FATFISH GROUP and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FATFISH GROUP position performs unexpectedly, Webster Financial 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| FATFISH GROUP vs. Zijin Mining Group | FATFISH GROUP vs. The Trade Desk | FATFISH GROUP vs. TRADEGATE | FATFISH GROUP vs. Jupiter Fund Management |
| Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Regions Financial | Webster Financial vs. Superior Plus Corp | Webster Financial vs. Origin Agritech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |