Correlation Between VIRGIN WINES and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and FANDIFI TECHNOLOGY 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 VIRGIN WINES and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on VIRGIN WINES and FANDIFI TECHNOLOGY 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 VIRGIN WINES with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and FANDIFI TECHNOLOGY.
Diversification Opportunities for VIRGIN WINES and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between VIRGIN WINES and FANDIFI TECHNOLOGY
Assuming the 90 days horizon VIRGIN WINES UK is expected to under-perform the FANDIFI TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, VIRGIN WINES UK is 10.18 times less risky than FANDIFI TECHNOLOGY. The stock trades about -0.06 of its potential returns per unit of risk. The FANDIFI TECHNOLOGY P is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.50 in FANDIFI TECHNOLOGY P on November 28, 2024 and sell it today you would lose (2.45) from holding FANDIFI TECHNOLOGY P or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIRGIN WINES UK vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| VIRGIN WINES UK |
| FANDIFI TECHNOLOGY |
VIRGIN WINES and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and FANDIFI TECHNOLOGY
The main advantage of trading using opposite VIRGIN WINES and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| VIRGIN WINES vs. REGAL ASIAN INVESTMENTS | VIRGIN WINES vs. Datalogic SpA | VIRGIN WINES vs. SILVER BULLET DATA | VIRGIN WINES vs. Northern Data AG |
| FANDIFI TECHNOLOGY vs. FONIX MOBILE PLC | FANDIFI TECHNOLOGY vs. British American Tobacco | FANDIFI TECHNOLOGY vs. INTERSHOP Communications Aktiengesellschaft | FANDIFI TECHNOLOGY vs. Titan Machinery |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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