Correlation Between FactSet Research and Admiral Group
Can any of the company-specific risk be diversified away by investing in both FactSet Research and Admiral Group 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 FactSet Research and Admiral Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FactSet Research Systems and Admiral Group plc, you can compare the effects of market volatilities on FactSet Research and Admiral Group 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 FactSet Research with a short position of Admiral Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Admiral Group.
Diversification Opportunities for FactSet Research and Admiral Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FactSet and Admiral is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Admiral Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admiral Group plc and FactSet Research 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 FactSet Research Systems are associated (or correlated) with Admiral Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admiral Group plc has no effect on the direction of FactSet Research i.e., FactSet Research and Admiral Group go up and down completely randomly.
Pair Corralation between FactSet Research and Admiral Group
Considering the 90-day investment horizon FactSet Research Systems is expected to generate 0.87 times more return on investment than Admiral Group. However, FactSet Research Systems is 1.15 times less risky than Admiral Group. It trades about 0.07 of its potential returns per unit of risk. Admiral Group plc is currently generating about -0.03 per unit of risk. If you would invest 43,296 in FactSet Research Systems on September 3, 2024 and sell it today you would earn a total of 5,771 from holding FactSet Research Systems or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FactSet Research Systems vs. Admiral Group plc
Performance |
| Timeline |
| FactSet Research Systems |
| Admiral Group plc |
FactSet Research and Admiral Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and Admiral Group
The main advantage of trading using opposite FactSet Research and Admiral Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, Admiral Group 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 Admiral Group will offset losses from the drop in Admiral Group's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services |
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 Stocks Directory module to find actively traded stocks across global markets.
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