Correlation Between Fbc Hldg and Reitmans (Canada)
Can any of the company-specific risk be diversified away by investing in both Fbc Hldg and Reitmans (Canada) 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 Fbc Hldg and Reitmans (Canada) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbc Hldg and Reitmans Limited, you can compare the effects of market volatilities on Fbc Hldg and Reitmans (Canada) 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 Fbc Hldg with a short position of Reitmans (Canada). Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbc Hldg and Reitmans (Canada).
Diversification Opportunities for Fbc Hldg and Reitmans (Canada)
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fbc and Reitmans is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fbc Hldg and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans (Canada) and Fbc Hldg 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 Fbc Hldg are associated (or correlated) with Reitmans (Canada). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans (Canada) has no effect on the direction of Fbc Hldg i.e., Fbc Hldg and Reitmans (Canada) go up and down completely randomly.
Pair Corralation between Fbc Hldg and Reitmans (Canada)
Given the investment horizon of 90 days Fbc Hldg is expected to generate 156.69 times more return on investment than Reitmans (Canada). However, Fbc Hldg is 156.69 times more volatile than Reitmans Limited. It trades about 0.29 of its potential returns per unit of risk. Reitmans Limited is currently generating about -0.01 per unit of risk. If you would invest 0.02 in Fbc Hldg on August 26, 2024 and sell it today you would lose (0.01) from holding Fbc Hldg or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.59% |
| Values | Daily Returns |
Fbc Hldg vs. Reitmans Limited
Performance |
| Timeline |
| Fbc Hldg |
| Reitmans (Canada) |
Fbc Hldg and Reitmans (Canada) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbc Hldg and Reitmans (Canada)
The main advantage of trading using opposite Fbc Hldg and Reitmans (Canada) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbc Hldg position performs unexpectedly, Reitmans (Canada) 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 Reitmans (Canada) will offset losses from the drop in Reitmans (Canada)'s long position.| Fbc Hldg vs. Reitmans Limited | Fbc Hldg vs. Reitmans Limited | Fbc Hldg vs. Lulus Fashion Lounge | Fbc Hldg vs. Duluth Holdings |
| Reitmans (Canada) vs. Reitmans Limited | Reitmans (Canada) vs. Lulus Fashion Lounge | Reitmans (Canada) vs. Duluth Holdings | Reitmans (Canada) vs. Abercrombie Fitch |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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