Correlation Between Alkame Holdings and Federal National
Can any of the company-specific risk be diversified away by investing in both Alkame Holdings and Federal 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 Alkame Holdings and Federal National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkame Holdings and Federal National Mortgage, you can compare the effects of market volatilities on Alkame Holdings and Federal 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 Alkame Holdings with a short position of Federal National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkame Holdings and Federal National.
Diversification Opportunities for Alkame Holdings and Federal National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alkame and Federal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alkame Holdings and Federal National Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal National Mortgage and Alkame Holdings 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 Alkame Holdings are associated (or correlated) with Federal National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal National Mortgage has no effect on the direction of Alkame Holdings i.e., Alkame Holdings and Federal National go up and down completely randomly.
Pair Corralation between Alkame Holdings and Federal National
Given the investment horizon of 90 days Alkame Holdings is expected to under-perform the Federal National. But the pink sheet apears to be less risky and, when comparing its historical volatility, Alkame Holdings is 1.06 times less risky than Federal National. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Federal National Mortgage is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,300,000 in Federal National Mortgage on September 4, 2024 and sell it today you would earn a total of 2,000,000 from holding Federal National Mortgage or generate 153.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkame Holdings vs. Federal National Mortgage
Performance |
| Timeline |
| Alkame Holdings |
| Federal National Mortgage |
Alkame Holdings and Federal National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkame Holdings and Federal National
The main advantage of trading using opposite Alkame Holdings and Federal National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkame Holdings position performs unexpectedly, Federal 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 Federal National will offset losses from the drop in Federal National's long position.| Alkame Holdings vs. Federal National Mortgage | Alkame Holdings vs. Shinhan Financial Group | Alkame Holdings vs. Woori Financial Group | Alkame Holdings vs. Grupo Aval |
| Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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