Correlation Between Europa Metals and FNB ETN
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By analyzing existing cross correlation between Europa Metals and FNB ETN on, you can compare the effects of market volatilities on Europa Metals and FNB ETN 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 Europa Metals with a short position of FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europa Metals and FNB ETN.
Diversification Opportunities for Europa Metals and FNB ETN
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Europa and FNB is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Europa Metals and FNB ETN on in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN on and Europa Metals 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 Europa Metals are associated (or correlated) with FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN on has no effect on the direction of Europa Metals i.e., Europa Metals and FNB ETN go up and down completely randomly.
Pair Corralation between Europa Metals and FNB ETN
Assuming the 90 days trading horizon Europa Metals is expected to generate 5.31 times more return on investment than FNB ETN. However, Europa Metals is 5.31 times more volatile than FNB ETN on. It trades about 0.02 of its potential returns per unit of risk. FNB ETN on is currently generating about 0.08 per unit of risk. If you would invest 8,000 in Europa Metals on September 2, 2024 and sell it today you would lose (3,500) from holding Europa Metals or give up 43.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.36% |
| Values | Daily Returns |
Europa Metals vs. FNB ETN on
Performance |
| Timeline |
| Europa Metals |
| FNB ETN on |
Europa Metals and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europa Metals and FNB ETN
The main advantage of trading using opposite Europa Metals and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europa Metals position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| Europa Metals vs. RCL Foods | Europa Metals vs. Hosken Consolidated Investments | Europa Metals vs. eMedia Holdings Limited | Europa Metals vs. Trematon Capital Investments |
| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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