Correlation Between First Abacus and Wilcon Depot
Can any of the company-specific risk be diversified away by investing in both First Abacus and Wilcon Depot 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 Wilcon Depot 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 Wilcon Depot, you can compare the effects of market volatilities on First Abacus and Wilcon Depot 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 Wilcon Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Abacus and Wilcon Depot.
Diversification Opportunities for First Abacus and Wilcon Depot
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Wilcon is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding First Abacus Financial and Wilcon Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilcon Depot 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 Wilcon Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilcon Depot has no effect on the direction of First Abacus i.e., First Abacus and Wilcon Depot go up and down completely randomly.
Pair Corralation between First Abacus and Wilcon Depot
If you would invest 69.00 in First Abacus Financial on August 28, 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 Against |
| Strength | Insignificant |
| Accuracy | 20.0% |
| Values | Daily Returns |
First Abacus Financial vs. Wilcon Depot
Performance |
| Timeline |
| First Abacus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Wilcon Depot |
First Abacus and Wilcon Depot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Abacus and Wilcon Depot
The main advantage of trading using opposite First Abacus and Wilcon Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Abacus position performs unexpectedly, Wilcon Depot 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 Wilcon Depot will offset losses from the drop in Wilcon Depot's long position.| First Abacus vs. Century Pacific Food | First Abacus vs. Alliance Select Foods | First Abacus vs. Figaro Coffee Group | First Abacus vs. Philex Mining Corp |
| Wilcon Depot vs. Converge Information Communications | Wilcon Depot vs. Top Frontier Investment | Wilcon Depot vs. Jollibee Foods Corp | Wilcon Depot vs. Globe Telecom |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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