Correlation Between Feat Fund and Safe T
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Safe T 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 Safe T 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 Safe T Group, you can compare the effects of market volatilities on Feat Fund and Safe T 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 Safe T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Safe T.
Diversification Opportunities for Feat Fund and Safe T
Pay attention - limited upside
The 3 months correlation between Feat and Safe is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Safe T Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe T Group 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 Safe T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe T Group has no effect on the direction of Feat Fund i.e., Feat Fund and Safe T go up and down completely randomly.
Pair Corralation between Feat Fund and Safe T
Assuming the 90 days trading horizon Feat Fund is expected to generate 4.37 times less return on investment than Safe T. But when comparing it to its historical volatility, Feat Fund Investments is 1.3 times less risky than Safe T. It trades about 0.03 of its potential returns per unit of risk. Safe T Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 17,440 in Safe T Group on September 3, 2024 and sell it today you would earn a total of 28,810 from holding Safe T Group or generate 165.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Safe T Group
Performance |
| Timeline |
| Feat Fund Investments |
| Safe T Group |
Feat Fund and Safe T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feat Fund and Safe T
The main advantage of trading using opposite Feat Fund and Safe T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Safe T 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 Safe T will offset losses from the drop in Safe T's long position.| Feat Fund vs. Bezeq Israeli Telecommunication | Feat Fund vs. Arad Investment Industrial | Feat Fund vs. Hiron Trade Investments Industrial | Feat Fund vs. Imed Infinity Medical Limited |
| Safe T vs. Batm Advanced Communications | Safe T vs. Isras Investment | Safe T vs. Feat Fund Investments | Safe T vs. Discount Investment Corp |
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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