Correlation Between Spineguard and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Spineguard 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 Spineguard and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spineguard and FNP Technologies SA, you can compare the effects of market volatilities on Spineguard 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 Spineguard with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and FNP Technologies.
Diversification Opportunities for Spineguard and FNP Technologies
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spineguard and FNP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Spineguard 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 Spineguard 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 Spineguard i.e., Spineguard and FNP Technologies go up and down completely randomly.
Pair Corralation between Spineguard and FNP Technologies
Assuming the 90 days trading horizon Spineguard is expected to generate 1.07 times more return on investment than FNP Technologies. However, Spineguard is 1.07 times more volatile than FNP Technologies SA. It trades about 0.0 of its potential returns per unit of risk. FNP Technologies SA is currently generating about -0.03 per unit of risk. If you would invest 59.00 in Spineguard on August 26, 2024 and sell it today you would lose (38.00) from holding Spineguard or give up 64.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.27% |
| Values | Daily Returns |
Spineguard vs. FNP Technologies SA
Performance |
| Timeline |
| Spineguard |
| FNP Technologies |
Spineguard and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spineguard and FNP Technologies
The main advantage of trading using opposite Spineguard and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard 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.| Spineguard vs. Biomerieux SA | Spineguard vs. Eurofins Scientific SE | Spineguard vs. Sartorius Stedim Biotech | Spineguard vs. SEB SA |
| FNP Technologies vs. Blockchain Group SA | FNP Technologies vs. Manitou BF SA | FNP Technologies vs. Ossiam Minimum Variance | FNP Technologies vs. Granite 3x LVMH |
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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