Correlation Between Femasys and Arrow Financial
Can any of the company-specific risk be diversified away by investing in both Femasys and Arrow Financial 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 Femasys and Arrow Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Arrow Financial, you can compare the effects of market volatilities on Femasys and Arrow Financial 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 Femasys with a short position of Arrow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Arrow Financial.
Diversification Opportunities for Femasys and Arrow Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Femasys and Arrow is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Arrow Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Financial and Femasys 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 Femasys are associated (or correlated) with Arrow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Financial has no effect on the direction of Femasys i.e., Femasys and Arrow Financial go up and down completely randomly.
Pair Corralation between Femasys and Arrow Financial
Given the investment horizon of 90 days Femasys is expected to generate 17.54 times less return on investment than Arrow Financial. In addition to that, Femasys is 2.71 times more volatile than Arrow Financial. It trades about 0.0 of its total potential returns per unit of risk. Arrow Financial is currently generating about 0.12 per unit of volatility. If you would invest 1,675 in Arrow Financial on September 4, 2024 and sell it today you would earn a total of 1,632 from holding Arrow Financial or generate 97.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Arrow Financial
Performance |
| Timeline |
| Femasys |
| Arrow Financial |
Femasys and Arrow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Arrow Financial
The main advantage of trading using opposite Femasys and Arrow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Arrow Financial 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 Arrow Financial will offset losses from the drop in Arrow Financial's long position.| Femasys vs. Baxter International | Femasys vs. West Pharmaceutical Services | Femasys vs. ResMed Inc | Femasys vs. The Cooper Companies, |
| Arrow Financial vs. Heritage Commerce Corp | Arrow Financial vs. Westamerica Bancorporation | Arrow Financial vs. Heritage Financial | Arrow Financial vs. National Bankshares |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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