Correlation Between FARM 51 and STRA Hannoversche
Can any of the company-specific risk be diversified away by investing in both FARM 51 and STRA Hannoversche 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 FARM 51 and STRA Hannoversche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FARM 51 GROUP and STRA Hannoversche Verkehrsbetriebe, you can compare the effects of market volatilities on FARM 51 and STRA Hannoversche 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 FARM 51 with a short position of STRA Hannoversche. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARM 51 and STRA Hannoversche.
Diversification Opportunities for FARM 51 and STRA Hannoversche
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FARM and STRA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding FARM 51 GROUP and STRA Hannoversche Verkehrsbetr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRA Hannoversche and FARM 51 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 FARM 51 GROUP are associated (or correlated) with STRA Hannoversche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRA Hannoversche has no effect on the direction of FARM 51 i.e., FARM 51 and STRA Hannoversche go up and down completely randomly.
Pair Corralation between FARM 51 and STRA Hannoversche
Assuming the 90 days horizon FARM 51 GROUP is expected to generate 0.89 times more return on investment than STRA Hannoversche. However, FARM 51 GROUP is 1.12 times less risky than STRA Hannoversche. It trades about 0.16 of its potential returns per unit of risk. STRA Hannoversche Verkehrsbetriebe is currently generating about -0.04 per unit of risk. If you would invest 292.00 in FARM 51 GROUP on October 25, 2024 and sell it today you would earn a total of 15.00 from holding FARM 51 GROUP or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FARM 51 GROUP vs. STRA Hannoversche Verkehrsbetr
Performance |
| Timeline |
| FARM 51 GROUP |
| STRA Hannoversche |
FARM 51 and STRA Hannoversche Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARM 51 and STRA Hannoversche
The main advantage of trading using opposite FARM 51 and STRA Hannoversche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARM 51 position performs unexpectedly, STRA Hannoversche 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 STRA Hannoversche will offset losses from the drop in STRA Hannoversche's long position.| FARM 51 vs. Lamar Advertising | FARM 51 vs. TOMBADOR IRON LTD | FARM 51 vs. ANGANG STEEL H | FARM 51 vs. CARSALESCOM |
| STRA Hannoversche vs. North American Construction | STRA Hannoversche vs. HANOVER INSURANCE | STRA Hannoversche vs. FARM 51 GROUP | STRA Hannoversche vs. UNIQA INSURANCE GR |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |