Correlation Between Cuentas and Friendable
Can any of the company-specific risk be diversified away by investing in both Cuentas and Friendable 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 Cuentas and Friendable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuentas and Friendable, you can compare the effects of market volatilities on Cuentas and Friendable 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 Cuentas with a short position of Friendable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuentas and Friendable.
Diversification Opportunities for Cuentas and Friendable
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cuentas and Friendable is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cuentas and Friendable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Friendable and Cuentas 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 Cuentas are associated (or correlated) with Friendable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Friendable has no effect on the direction of Cuentas i.e., Cuentas and Friendable go up and down completely randomly.
Pair Corralation between Cuentas and Friendable
If you would invest 0.01 in Friendable on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Friendable or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Cuentas vs. Friendable
Performance |
| Timeline |
| Cuentas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Friendable |
Cuentas and Friendable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuentas and Friendable
The main advantage of trading using opposite Cuentas and Friendable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuentas position performs unexpectedly, Friendable 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 Friendable will offset losses from the drop in Friendable's long position.| Cuentas vs. Auddia Inc | Cuentas vs. Bridgeline Digital | Cuentas vs. Mediaco Holding | Cuentas vs. Digital Brands Group |
| Friendable vs. HUMANA INC | Friendable vs. SCOR PK | Friendable vs. Aquagold International | Friendable vs. Barloworld Ltd ADR |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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