Correlation Between Facc AG and Frequentis
Can any of the company-specific risk be diversified away by investing in both Facc AG and Frequentis 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 Facc AG and Frequentis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Facc AG and Frequentis AG, you can compare the effects of market volatilities on Facc AG and Frequentis 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 Facc AG with a short position of Frequentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Facc AG and Frequentis.
Diversification Opportunities for Facc AG and Frequentis
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Facc and Frequentis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Facc AG and Frequentis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequentis AG and Facc AG 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 Facc AG are associated (or correlated) with Frequentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequentis AG has no effect on the direction of Facc AG i.e., Facc AG and Frequentis go up and down completely randomly.
Pair Corralation between Facc AG and Frequentis
Assuming the 90 days trading horizon Facc AG is expected to generate 1.47 times more return on investment than Frequentis. However, Facc AG is 1.47 times more volatile than Frequentis AG. It trades about 0.14 of its potential returns per unit of risk. Frequentis AG is currently generating about 0.17 per unit of risk. If you would invest 653.00 in Facc AG on November 27, 2024 and sell it today you would earn a total of 42.00 from holding Facc AG or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Facc AG vs. Frequentis AG
Performance |
| Timeline |
| Facc AG |
| Frequentis AG |
Facc AG and Frequentis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Facc AG and Frequentis
The main advantage of trading using opposite Facc AG and Frequentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Facc AG position performs unexpectedly, Frequentis 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 Frequentis will offset losses from the drop in Frequentis' long position.| Facc AG vs. Voestalpine AG | Facc AG vs. Lenzing Aktiengesellschaft | Facc AG vs. AT S Austria | Facc AG vs. OMV Aktiengesellschaft |
| Frequentis vs. AT S Austria | Frequentis vs. Lenzing Aktiengesellschaft | Frequentis vs. Facc AG | Frequentis vs. EVN AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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