Correlation Between Federal Agricultural and SOEDER SPORTFISKE
Can any of the company-specific risk be diversified away by investing in both Federal Agricultural and SOEDER SPORTFISKE 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 Federal Agricultural and SOEDER SPORTFISKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Agricultural Mortgage and SOEDER SPORTFISKE AB, you can compare the effects of market volatilities on Federal Agricultural and SOEDER SPORTFISKE 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 Federal Agricultural with a short position of SOEDER SPORTFISKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Agricultural and SOEDER SPORTFISKE.
Diversification Opportunities for Federal Agricultural and SOEDER SPORTFISKE
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federal and SOEDER is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Federal Agricultural Mortgage and SOEDER SPORTFISKE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOEDER SPORTFISKE and Federal Agricultural 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 Federal Agricultural Mortgage are associated (or correlated) with SOEDER SPORTFISKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOEDER SPORTFISKE has no effect on the direction of Federal Agricultural i.e., Federal Agricultural and SOEDER SPORTFISKE go up and down completely randomly.
Pair Corralation between Federal Agricultural and SOEDER SPORTFISKE
Assuming the 90 days horizon Federal Agricultural is expected to generate 1.45 times less return on investment than SOEDER SPORTFISKE. But when comparing it to its historical volatility, Federal Agricultural Mortgage is 1.55 times less risky than SOEDER SPORTFISKE. It trades about 0.05 of its potential returns per unit of risk. SOEDER SPORTFISKE AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 228.00 in SOEDER SPORTFISKE AB on November 3, 2024 and sell it today you would earn a total of 25.00 from holding SOEDER SPORTFISKE AB or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Agricultural Mortgage vs. SOEDER SPORTFISKE AB
Performance |
| Timeline |
| Federal Agricultural |
| SOEDER SPORTFISKE |
Federal Agricultural and SOEDER SPORTFISKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Agricultural and SOEDER SPORTFISKE
The main advantage of trading using opposite Federal Agricultural and SOEDER SPORTFISKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Agricultural position performs unexpectedly, SOEDER SPORTFISKE 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 SOEDER SPORTFISKE will offset losses from the drop in SOEDER SPORTFISKE's long position.| Federal Agricultural vs. COPLAND ROAD CAPITAL | Federal Agricultural vs. Nishi Nippon Railroad Co | Federal Agricultural vs. MONEYSUPERMARKET | Federal Agricultural vs. Cal Maine Foods |
| SOEDER SPORTFISKE vs. Booking Holdings | SOEDER SPORTFISKE vs. Oriental Land Co | SOEDER SPORTFISKE vs. ANTA Sports Products | SOEDER SPORTFISKE vs. Li Ning Company |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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