Correlation Between Auctus Alternative and Finexia Financial
Can any of the company-specific risk be diversified away by investing in both Auctus Alternative and Finexia Financial 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 Auctus Alternative and Finexia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auctus Alternative Investments and Finexia Financial Group, you can compare the effects of market volatilities on Auctus Alternative and Finexia Financial 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 Auctus Alternative with a short position of Finexia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auctus Alternative and Finexia Financial.
Diversification Opportunities for Auctus Alternative and Finexia Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auctus and Finexia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Auctus Alternative Investments and Finexia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finexia Financial and Auctus 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 Auctus Alternative Investments are associated (or correlated) with Finexia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finexia Financial has no effect on the direction of Auctus Alternative i.e., Auctus Alternative and Finexia Financial go up and down completely randomly.
Pair Corralation between Auctus Alternative and Finexia Financial
Assuming the 90 days trading horizon Auctus Alternative Investments is expected to under-perform the Finexia Financial. But the stock apears to be less risky and, when comparing its historical volatility, Auctus Alternative Investments is 1.36 times less risky than Finexia Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Finexia Financial Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Finexia Financial Group on October 30, 2024 and sell it today you would lose (5.00) from holding Finexia Financial Group or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auctus Alternative Investments vs. Finexia Financial Group
Performance |
| Timeline |
| Auctus Alternative |
| Finexia Financial |
Auctus Alternative and Finexia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auctus Alternative and Finexia Financial
The main advantage of trading using opposite Auctus Alternative and Finexia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auctus Alternative position performs unexpectedly, Finexia Financial 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 Finexia Financial will offset losses from the drop in Finexia Financial's long position.| Auctus Alternative vs. Perseus Mining | Auctus Alternative vs. Southern Hemisphere Mining | Auctus Alternative vs. MetalsGrove Mining | Auctus Alternative vs. Aussie Broadband |
| Finexia Financial vs. Black Rock Mining | Finexia Financial vs. Super Retail Group | Finexia Financial vs. Centaurus Metals | Finexia Financial vs. Aurelia Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |