Correlation Between Mauna Kea and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Mauna Kea and FNP Technologies 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 Mauna Kea and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mauna Kea Technologies and FNP Technologies SA, you can compare the effects of market volatilities on Mauna Kea and FNP Technologies 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 Mauna Kea with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mauna Kea and FNP Technologies.
Diversification Opportunities for Mauna Kea and FNP Technologies
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mauna and FNP is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mauna Kea Technologies and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Mauna Kea 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 Mauna Kea Technologies are associated (or correlated) with FNP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNP Technologies has no effect on the direction of Mauna Kea i.e., Mauna Kea and FNP Technologies go up and down completely randomly.
Pair Corralation between Mauna Kea and FNP Technologies
If you would invest 6.00 in FNP Technologies SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FNP Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mauna Kea Technologies vs. FNP Technologies SA
Performance |
| Timeline |
| Mauna Kea Technologies |
| FNP Technologies |
Mauna Kea and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mauna Kea and FNP Technologies
The main advantage of trading using opposite Mauna Kea and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mauna Kea position performs unexpectedly, FNP Technologies 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 FNP Technologies will offset losses from the drop in FNP Technologies' long position.| Mauna Kea vs. LVMH Mot Hennessy | Mauna Kea vs. LOreal SA | Mauna Kea vs. Hermes International SCA | Mauna Kea vs. Manitou BF SA |
| FNP Technologies vs. Novatech Industries SA | FNP Technologies vs. Metalliance SA | FNP Technologies vs. Bilendi | FNP Technologies vs. CMG Cleantech SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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