Correlation Between FactSet Research and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both FactSet Research and SalMar ASA 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 SalMar ASA 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 SalMar ASA, you can compare the effects of market volatilities on FactSet Research and SalMar ASA 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 SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and SalMar ASA.
Diversification Opportunities for FactSet Research and SalMar ASA
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between FactSet and SalMar is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA 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 SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of FactSet Research i.e., FactSet Research and SalMar ASA go up and down completely randomly.
Pair Corralation between FactSet Research and SalMar ASA
If you would invest 45,783 in FactSet Research Systems on September 2, 2024 and sell it today you would earn a total of 3,284 from holding FactSet Research Systems or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FactSet Research Systems vs. SalMar ASA
Performance |
| Timeline |
| FactSet Research Systems |
| SalMar ASA |
FactSet Research and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and SalMar ASA
The main advantage of trading using opposite FactSet Research and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research position performs unexpectedly, SalMar ASA 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| SalMar ASA vs. Artisan Consumer Goods | SalMar ASA vs. Altavoz Entertainment | SalMar ASA vs. Avi Ltd ADR | SalMar ASA vs. Aryzta AG PK |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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