Correlation Between CAP LEASE and FC Investment
Can any of the company-specific risk be diversified away by investing in both CAP LEASE 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 CAP LEASE and FC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAP LEASE AVIATION and FC Investment Trust, you can compare the effects of market volatilities on CAP LEASE 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 CAP LEASE with a short position of FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and FC Investment.
Diversification Opportunities for CAP LEASE and FC Investment
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CAP and FCIT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION 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 CAP LEASE 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 CAP LEASE AVIATION 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 CAP LEASE i.e., CAP LEASE and FC Investment go up and down completely randomly.
Pair Corralation between CAP LEASE and FC Investment
If you would invest 113,000 in FC Investment Trust on November 7, 2024 and sell it today you would earn a total of 3,800 from holding FC Investment Trust or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAP LEASE AVIATION vs. FC Investment Trust
Performance |
| Timeline |
| CAP LEASE AVIATION |
| FC Investment Trust |
CAP LEASE and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAP LEASE and FC Investment
The main advantage of trading using opposite CAP LEASE and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAP LEASE 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.| CAP LEASE vs. Givaudan SA | CAP LEASE vs. Antofagasta PLC | CAP LEASE vs. Ferrexpo PLC | CAP LEASE vs. Atalaya Mining |
| FC Investment vs. Kinnevik Investment AB | FC Investment vs. Edinburgh Investment Trust | FC Investment vs. Lowland Investment Co | FC Investment vs. Livermore Investments 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |