Correlation Between Alphanam and Fecon Mining
Can any of the company-specific risk be diversified away by investing in both Alphanam and Fecon Mining 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 Alphanam and Fecon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and Fecon Mining JSC, you can compare the effects of market volatilities on Alphanam and Fecon Mining 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 Alphanam with a short position of Fecon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and Fecon Mining.
Diversification Opportunities for Alphanam and Fecon Mining
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alphanam and Fecon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and Fecon Mining JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fecon Mining JSC and Alphanam 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 Alphanam ME are associated (or correlated) with Fecon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fecon Mining JSC has no effect on the direction of Alphanam i.e., Alphanam and Fecon Mining go up and down completely randomly.
Pair Corralation between Alphanam and Fecon Mining
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the Fecon Mining. In addition to that, Alphanam is 1.39 times more volatile than Fecon Mining JSC. It trades about -0.07 of its total potential returns per unit of risk. Fecon Mining JSC is currently generating about 0.0 per unit of volatility. If you would invest 353,000 in Fecon Mining JSC on September 3, 2024 and sell it today you would lose (47,000) from holding Fecon Mining JSC or give up 13.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.5% |
| Values | Daily Returns |
Alphanam ME vs. Fecon Mining JSC
Performance |
| Timeline |
| Alphanam ME |
| Fecon Mining JSC |
Alphanam and Fecon Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and Fecon Mining
The main advantage of trading using opposite Alphanam and Fecon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, Fecon Mining 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 Fecon Mining will offset losses from the drop in Fecon Mining's long position.| Alphanam vs. HVC Investment and | Alphanam vs. Construction And Investment | Alphanam vs. Techno Agricultural Supplying | Alphanam vs. Ha Long Investment |
| Fecon Mining vs. FIT INVEST JSC | Fecon Mining vs. Damsan JSC | Fecon Mining vs. An Phat Plastic | Fecon Mining vs. Alphanam ME |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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