Correlation Between FC Investment and National Atomic
Can any of the company-specific risk be diversified away by investing in both FC Investment and National Atomic 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 National Atomic 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 National Atomic Co, you can compare the effects of market volatilities on FC Investment and National Atomic 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 National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and National Atomic.
Diversification Opportunities for FC Investment and National Atomic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FCIT and National is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic 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 National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of FC Investment i.e., FC Investment and National Atomic go up and down completely randomly.
Pair Corralation between FC Investment and National Atomic
Assuming the 90 days trading horizon FC Investment Trust is expected to generate 0.35 times more return on investment than National Atomic. However, FC Investment Trust is 2.87 times less risky than National Atomic. It trades about 0.09 of its potential returns per unit of risk. National Atomic Co is currently generating about 0.02 per unit of risk. If you would invest 94,857 in FC Investment Trust on September 14, 2024 and sell it today you would earn a total of 18,343 from holding FC Investment Trust or generate 19.34% 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. National Atomic Co
Performance |
| Timeline |
| FC Investment Trust |
| National Atomic |
FC Investment and National Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and National Atomic
The main advantage of trading using opposite FC Investment and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, National Atomic 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 National Atomic will offset losses from the drop in National Atomic's long position.| FC Investment vs. Austevoll Seafood ASA | FC Investment vs. Edita Food Industries | FC Investment vs. Premier Foods PLC | FC Investment vs. Ebro Foods |
| National Atomic vs. Gamma Communications PLC | National Atomic vs. Impax Asset Management | National Atomic vs. Aeorema Communications Plc | National Atomic vs. Taiwan Semiconductor Manufacturing |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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