Correlation Between Carlson Investments and Fabryki Mebli
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and Fabryki Mebli 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 Carlson Investments and Fabryki Mebli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and Fabryki Mebli Forte, you can compare the effects of market volatilities on Carlson Investments and Fabryki Mebli 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 Carlson Investments with a short position of Fabryki Mebli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and Fabryki Mebli.
Diversification Opportunities for Carlson Investments and Fabryki Mebli
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlson and Fabryki is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and Fabryki Mebli Forte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabryki Mebli Forte and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with Fabryki Mebli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabryki Mebli Forte has no effect on the direction of Carlson Investments i.e., Carlson Investments and Fabryki Mebli go up and down completely randomly.
Pair Corralation between Carlson Investments and Fabryki Mebli
Assuming the 90 days trading horizon Carlson Investments is expected to generate 2.24 times less return on investment than Fabryki Mebli. In addition to that, Carlson Investments is 1.93 times more volatile than Fabryki Mebli Forte. It trades about 0.04 of its total potential returns per unit of risk. Fabryki Mebli Forte is currently generating about 0.18 per unit of volatility. If you would invest 2,400 in Fabryki Mebli Forte on September 14, 2024 and sell it today you would earn a total of 230.00 from holding Fabryki Mebli Forte or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlson Investments SA vs. Fabryki Mebli Forte
Performance |
| Timeline |
| Carlson Investments |
| Fabryki Mebli Forte |
Carlson Investments and Fabryki Mebli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and Fabryki Mebli
The main advantage of trading using opposite Carlson Investments and Fabryki Mebli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, Fabryki Mebli 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 Fabryki Mebli will offset losses from the drop in Fabryki Mebli's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Asseco South Eastern | Carlson Investments vs. HM Inwest SA |
| Fabryki Mebli vs. Inter Cars SA | Fabryki Mebli vs. Carlson Investments SA | Fabryki Mebli vs. New Tech Venture | Fabryki Mebli vs. Saule Technologies SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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