Correlation Between Firsthand Alternative and Riverpark Floating
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Riverpark Floating 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 Firsthand Alternative and Riverpark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Riverpark Floating Rate, you can compare the effects of market volatilities on Firsthand Alternative and Riverpark Floating 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 Firsthand Alternative with a short position of Riverpark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Riverpark Floating.
Diversification Opportunities for Firsthand Alternative and Riverpark Floating
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Riverpark is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Riverpark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riverpark Floating Rate and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Riverpark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riverpark Floating Rate has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Riverpark Floating go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Riverpark Floating
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 13.7 times more return on investment than Riverpark Floating. However, Firsthand Alternative is 13.7 times more volatile than Riverpark Floating Rate. It trades about 0.12 of its potential returns per unit of risk. Riverpark Floating Rate is currently generating about 0.25 per unit of risk. If you would invest 988.00 in Firsthand Alternative Energy on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Firsthand Alternative Energy or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Riverpark Floating Rate
Performance |
| Timeline |
| Firsthand Alternative |
| Riverpark Floating Rate |
Firsthand Alternative and Riverpark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Riverpark Floating
The main advantage of trading using opposite Firsthand Alternative and Riverpark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Riverpark Floating 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 Riverpark Floating will offset losses from the drop in Riverpark Floating's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Riverpark Floating vs. Riverpark Short Term | Riverpark Floating vs. Riverpark Short Term | Riverpark Floating vs. Riverparknext Century Lg | Riverpark Floating vs. Riverparknext Century Gr |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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