Correlation Between FC Investment and Everyman Media
Can any of the company-specific risk be diversified away by investing in both FC Investment and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on FC Investment and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Everyman Media.
Diversification Opportunities for FC Investment and Everyman Media
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FCIT and Everyman is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of FC Investment i.e., FC Investment and Everyman Media go up and down completely randomly.
Pair Corralation between FC Investment and Everyman Media
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.46 times more return on investment than Everyman Media. However, FC Investment Trust is 2.17 times less risky than Everyman Media. It trades about 0.05 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.07 per unit of risk. If you would invest 97,005 in FC Investment Trust on October 27, 2024 and sell it today you would earn a total of 20,795 from holding FC Investment Trust or generate 21.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
FC Investment Trust vs. Everyman Media Group
Performance |
| Timeline |
| FC Investment Trust |
| Everyman Media Group |
FC Investment and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Everyman Media
The main advantage of trading using opposite FC Investment and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| FC Investment vs. JLEN Environmental Assets | FC Investment vs. Iron Mountain | FC Investment vs. United States Steel | FC Investment vs. First Majestic Silver |
| Everyman Media vs. Odfjell Drilling | Everyman Media vs. Ebro Foods | Everyman Media vs. Indutrade AB | Everyman Media vs. Premier Foods PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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