Correlation Between Azure Holding and FUNR
Can any of the company-specific risk be diversified away by investing in both Azure Holding and FUNR 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 Azure Holding and FUNR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azure Holding Group and FUNR, you can compare the effects of market volatilities on Azure Holding and FUNR 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 Azure Holding with a short position of FUNR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azure Holding and FUNR.
Diversification Opportunities for Azure Holding and FUNR
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Azure and FUNR is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Azure Holding Group and FUNR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUNR and Azure Holding 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 Azure Holding Group are associated (or correlated) with FUNR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUNR has no effect on the direction of Azure Holding i.e., Azure Holding and FUNR go up and down completely randomly.
Pair Corralation between Azure Holding and FUNR
Given the investment horizon of 90 days Azure Holding Group is expected to generate 2.98 times more return on investment than FUNR. However, Azure Holding is 2.98 times more volatile than FUNR. It trades about 0.09 of its potential returns per unit of risk. FUNR is currently generating about 0.1 per unit of risk. If you would invest 0.01 in Azure Holding Group on September 1, 2024 and sell it today you would earn a total of 18.99 from holding Azure Holding Group or generate 189900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Azure Holding Group vs. FUNR
Performance |
| Timeline |
| Azure Holding Group |
| FUNR |
Azure Holding and FUNR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azure Holding and FUNR
The main advantage of trading using opposite Azure Holding and FUNR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azure Holding position performs unexpectedly, FUNR 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 FUNR will offset losses from the drop in FUNR's long position.| Azure Holding vs. Porsche Automobile Holding | Azure Holding vs. Ferrari NV | Azure Holding vs. Toyota Motor | Azure Holding vs. General Motors |
| FUNR vs. American Leisure Holdings | FUNR vs. Supurva Healthcare Group | FUNR vs. China Health Management | FUNR vs. Embrace Change Acquisition |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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