Correlation Between First Abacus and Figaro Coffee
Can any of the company-specific risk be diversified away by investing in both First Abacus and Figaro Coffee 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 First Abacus and Figaro Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Abacus Financial and Figaro Coffee Group, you can compare the effects of market volatilities on First Abacus and Figaro Coffee 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 First Abacus with a short position of Figaro Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Abacus and Figaro Coffee.
Diversification Opportunities for First Abacus and Figaro Coffee
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and Figaro is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Abacus Financial and Figaro Coffee Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Figaro Coffee Group and First Abacus 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 First Abacus Financial are associated (or correlated) with Figaro Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Figaro Coffee Group has no effect on the direction of First Abacus i.e., First Abacus and Figaro Coffee go up and down completely randomly.
Pair Corralation between First Abacus and Figaro Coffee
If you would invest 69.00 in First Abacus Financial on September 3, 2024 and sell it today you would earn a total of 0.00 from holding First Abacus Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
First Abacus Financial vs. Figaro Coffee Group
Performance |
| Timeline |
| First Abacus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Figaro Coffee Group |
First Abacus and Figaro Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Abacus and Figaro Coffee
The main advantage of trading using opposite First Abacus and Figaro Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Abacus position performs unexpectedly, Figaro Coffee 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 Figaro Coffee will offset losses from the drop in Figaro Coffee's long position.| First Abacus vs. Jollibee Foods Corp | First Abacus vs. COL Financial Group | First Abacus vs. Transpacific Broadband Group | First Abacus vs. Semirara Mining Corp |
| Figaro Coffee vs. Metropolitan Bank Trust | Figaro Coffee vs. Manulife Financial Corp | Figaro Coffee vs. East West Banking | Figaro Coffee vs. COL Financial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |