Correlation Between AF2 Capital and Income Financial
Can any of the company-specific risk be diversified away by investing in both AF2 Capital and Income 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 AF2 Capital and Income Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AF2 Capital Corp and Income Financial Trust, you can compare the effects of market volatilities on AF2 Capital and Income 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 AF2 Capital with a short position of Income Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AF2 Capital and Income Financial.
Diversification Opportunities for AF2 Capital and Income Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AF2 and Income is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AF2 Capital Corp and Income Financial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Financial Trust and AF2 Capital 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 AF2 Capital Corp are associated (or correlated) with Income Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Financial Trust has no effect on the direction of AF2 Capital i.e., AF2 Capital and Income Financial go up and down completely randomly.
Pair Corralation between AF2 Capital and Income Financial
If you would invest 631.00 in Income Financial Trust on September 3, 2024 and sell it today you would earn a total of 268.00 from holding Income Financial Trust or generate 42.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AF2 Capital Corp vs. Income Financial Trust
Performance |
| Timeline |
| AF2 Capital Corp |
| Income Financial Trust |
AF2 Capital and Income Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AF2 Capital and Income Financial
The main advantage of trading using opposite AF2 Capital and Income Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AF2 Capital position performs unexpectedly, Income 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 Income Financial will offset losses from the drop in Income Financial's long position.| AF2 Capital vs. IGM Financial | AF2 Capital vs. Highwood Asset Management | AF2 Capital vs. Definity Financial Corp | AF2 Capital vs. Brookfield Office Properties |
| Income Financial vs. Dividend Select 15 | Income Financial vs. Global Dividend Growth | Income Financial vs. Brompton Split Banc | Income Financial vs. Real Estate E Commerce |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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