Correlation Between FC Investment and 70GD
Can any of the company-specific risk be diversified away by investing in both FC Investment and 70GD 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 FC Investment and 70GD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and 70GD, you can compare the effects of market volatilities on FC Investment and 70GD 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 FC Investment with a short position of 70GD. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and 70GD.
Diversification Opportunities for FC Investment and 70GD
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FCIT and 70GD is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and 70GD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 70GD and FC Investment 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 FC Investment Trust are associated (or correlated) with 70GD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 70GD has no effect on the direction of FC Investment i.e., FC Investment and 70GD go up and down completely randomly.
Pair Corralation between FC Investment and 70GD
If you would invest 110,839 in FC Investment Trust on October 31, 2024 and sell it today you would earn a total of 5,961 from holding FC Investment Trust or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FC Investment Trust vs. 70GD
Performance |
| Timeline |
| FC Investment Trust |
| 70GD |
FC Investment and 70GD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and 70GD
The main advantage of trading using opposite FC Investment and 70GD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, 70GD 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 70GD will offset losses from the drop in 70GD's long position.| FC Investment vs. G5 Entertainment AB | FC Investment vs. Ubisoft Entertainment | FC Investment vs. Fidelity National Information | FC Investment vs. AcadeMedia AB |
| 70GD vs. Flutter Entertainment PLC | 70GD vs. Batm Advanced Communications | 70GD vs. Intermediate Capital Group | 70GD vs. Scandinavian Tobacco 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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