Correlation Between Cboe UK and Fair Oaks
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By analyzing existing cross correlation between Cboe UK Consumer and Fair Oaks Income, you can compare the effects of market volatilities on Cboe UK and Fair Oaks 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 Cboe UK with a short position of Fair Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Fair Oaks.
Diversification Opportunities for Cboe UK and Fair Oaks
Very weak diversification
The 3 months correlation between Cboe and Fair is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Fair Oaks Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Oaks Income and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Fair Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Oaks Income has no effect on the direction of Cboe UK i.e., Cboe UK and Fair Oaks go up and down completely randomly.
Pair Corralation between Cboe UK and Fair Oaks
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 1.46 times more return on investment than Fair Oaks. However, Cboe UK is 1.46 times more volatile than Fair Oaks Income. It trades about 0.08 of its potential returns per unit of risk. Fair Oaks Income is currently generating about 0.1 per unit of risk. If you would invest 2,381,414 in Cboe UK Consumer on November 21, 2024 and sell it today you would earn a total of 995,535 from holding Cboe UK Consumer or generate 41.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.61% |
| Values | Daily Returns |
Cboe UK Consumer vs. Fair Oaks Income
Performance |
| Timeline |
Cboe UK and Fair Oaks Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Fair Oaks Income
Pair trading matchups for Fair Oaks
Pair Trading with Cboe UK and Fair Oaks
The main advantage of trading using opposite Cboe UK and Fair Oaks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Fair Oaks 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 Fair Oaks will offset losses from the drop in Fair Oaks' long position.| Cboe UK vs. Aeorema Communications Plc | Cboe UK vs. UNIQA Insurance Group | Cboe UK vs. Spirent Communications plc | Cboe UK vs. Charter Communications Cl |
| Fair Oaks vs. Infrastrutture Wireless Italiane | Fair Oaks vs. Beowulf Mining | Fair Oaks vs. Blackrock World Mining | Fair Oaks vs. GreenX 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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