Correlation Between Falcon Metals and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Falcon Metals and Maggie Beer 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 Falcon Metals and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Metals and Maggie Beer Holdings, you can compare the effects of market volatilities on Falcon Metals and Maggie Beer 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 Falcon Metals with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Metals and Maggie Beer.
Diversification Opportunities for Falcon Metals and Maggie Beer
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Falcon and Maggie is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Metals and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Falcon 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 Falcon Metals are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Falcon Metals i.e., Falcon Metals and Maggie Beer go up and down completely randomly.
Pair Corralation between Falcon Metals and Maggie Beer
Assuming the 90 days trading horizon Falcon Metals is expected to generate 1.24 times more return on investment than Maggie Beer. However, Falcon Metals is 1.24 times more volatile than Maggie Beer Holdings. It trades about 0.12 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.04 per unit of risk. If you would invest 12.00 in Falcon Metals on November 1, 2024 and sell it today you would earn a total of 1.00 from holding Falcon Metals or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Metals vs. Maggie Beer Holdings
Performance |
| Timeline |
| Falcon Metals |
| Maggie Beer Holdings |
Falcon Metals and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Metals and Maggie Beer
The main advantage of trading using opposite Falcon Metals and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Metals position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Falcon Metals vs. Collins Foods | Falcon Metals vs. Global Health | Falcon Metals vs. Hutchison Telecommunications | Falcon Metals vs. Pure Foods Tasmania |
| Maggie Beer vs. Complii FinTech Solutions | Maggie Beer vs. Readytech Holdings | Maggie Beer vs. Falcon Metals | Maggie Beer vs. Genetic Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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