Correlation Between FFW and FFD Financial
Can any of the company-specific risk be diversified away by investing in both FFW and FFD 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 FFW and FFD Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FFW Corporation and FFD Financial Corp, you can compare the effects of market volatilities on FFW and FFD 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 FFW with a short position of FFD Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FFW and FFD Financial.
Diversification Opportunities for FFW and FFD Financial
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FFW and FFD is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding FFW Corp. and FFD Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFD Financial Corp and FFW 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 FFW Corporation are associated (or correlated) with FFD Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFD Financial Corp has no effect on the direction of FFW i.e., FFW and FFD Financial go up and down completely randomly.
Pair Corralation between FFW and FFD Financial
If you would invest 3,950 in FFW Corporation on October 22, 2024 and sell it today you would earn a total of 50.00 from holding FFW Corporation or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
FFW Corp. vs. FFD Financial Corp
Performance |
| Timeline |
| FFW Corporation |
| FFD Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FFW and FFD Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FFW and FFD Financial
The main advantage of trading using opposite FFW and FFD Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FFW position performs unexpectedly, FFD 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 FFD Financial will offset losses from the drop in FFD Financial's long position.| FFW vs. First Farmers Financial | FFW vs. Farmers Merchants Bancorp | FFW vs. Lakeland Financial | FFW vs. Eagle Financial Services |
| FFD Financial vs. First Bancorp | FFD Financial vs. Triumph Financial | FFD Financial vs. Northeast Bancorp | FFD Financial vs. Greene County Bancorp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |