Correlation Between Feat Fund and Abra Information
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Abra Information 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 Feat Fund and Abra Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Abra Information Technologies, you can compare the effects of market volatilities on Feat Fund and Abra Information 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 Feat Fund with a short position of Abra Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Abra Information.
Diversification Opportunities for Feat Fund and Abra Information
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Feat and Abra is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Abra Information Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abra Information Tec and Feat Fund 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 Feat Fund Investments are associated (or correlated) with Abra Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abra Information Tec has no effect on the direction of Feat Fund i.e., Feat Fund and Abra Information go up and down completely randomly.
Pair Corralation between Feat Fund and Abra Information
Assuming the 90 days trading horizon Feat Fund Investments is expected to under-perform the Abra Information. But the stock apears to be less risky and, when comparing its historical volatility, Feat Fund Investments is 1.93 times less risky than Abra Information. The stock trades about -0.24 of its potential returns per unit of risk. The Abra Information Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 32,000 in Abra Information Technologies on November 27, 2024 and sell it today you would earn a total of 470.00 from holding Abra Information Technologies or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Abra Information Technologies
Performance |
| Timeline |
| Feat Fund Investments |
| Abra Information Tec |
Feat Fund and Abra Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Abra Information
The main advantage of trading using opposite Feat Fund and Abra Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Abra Information 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 Abra Information will offset losses from the drop in Abra Information's long position.| Feat Fund vs. Orbit Technologies | Feat Fund vs. Abra Information Technologies | Feat Fund vs. WhiteSmoke Software | Feat Fund vs. Suny Cellular Communication |
| Abra Information vs. Opko Health | Abra Information vs. WhiteSmoke Software | Abra Information vs. Scope Metals Group | Abra Information vs. Oron Group Investments |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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