Correlation Between FC Investment and Cboe UK
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By analyzing existing cross correlation between FC Investment Trust and Cboe UK Consumer, you can compare the effects of market volatilities on FC Investment and Cboe UK 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 Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Cboe UK.
Diversification Opportunities for FC Investment and Cboe UK
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FCIT and Cboe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer 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 Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of FC Investment i.e., FC Investment and Cboe UK go up and down completely randomly.
Pair Corralation between FC Investment and Cboe UK
Assuming the 90 days trading horizon FC Investment is expected to generate 1.64 times less return on investment than Cboe UK. But when comparing it to its historical volatility, FC Investment Trust is 1.32 times less risky than Cboe UK. It trades about 0.36 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 2,958,388 in Cboe UK Consumer on August 29, 2024 and sell it today you would earn a total of 318,193 from holding Cboe UK Consumer or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FC Investment Trust vs. Cboe UK Consumer
Performance |
| Timeline |
FC Investment and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
FC Investment Trust
Pair trading matchups for FC Investment
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with FC Investment and Cboe UK
The main advantage of trading using opposite FC Investment and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| FC Investment vs. Catalyst Media Group | FC Investment vs. Oncimmune Holdings plc | FC Investment vs. Invesco Health Care | FC Investment vs. Coor Service Management |
| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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