Correlation Between Centaur Media and FC Investment
Can any of the company-specific risk be diversified away by investing in both Centaur Media and FC Investment 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 Centaur Media and FC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and FC Investment Trust, you can compare the effects of market volatilities on Centaur Media and FC Investment 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 Centaur Media with a short position of FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and FC Investment.
Diversification Opportunities for Centaur Media and FC Investment
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centaur and FCIT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust and Centaur Media 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 Centaur Media are associated (or correlated) with FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Centaur Media i.e., Centaur Media and FC Investment go up and down completely randomly.
Pair Corralation between Centaur Media and FC Investment
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the FC Investment. In addition to that, Centaur Media is 3.24 times more volatile than FC Investment Trust. It trades about -0.13 of its total potential returns per unit of risk. FC Investment Trust is currently generating about 0.1 per unit of volatility. If you would invest 101,085 in FC Investment Trust on August 26, 2024 and sell it today you would earn a total of 11,115 from holding FC Investment Trust or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. FC Investment Trust
Performance |
| Timeline |
| Centaur Media |
| FC Investment Trust |
Centaur Media and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and FC Investment
The main advantage of trading using opposite Centaur Media and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's long position.| Centaur Media vs. SupplyMe Capital PLC | Centaur Media vs. SM Energy Co | Centaur Media vs. FuelCell Energy | Centaur Media vs. Grand Vision Media |
| FC Investment vs. Centaur Media | FC Investment vs. Samsung Electronics Co | FC Investment vs. Arrow Electronics | FC Investment vs. Catalyst Media Group |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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