Correlation Between Future Generation and IXUP
Can any of the company-specific risk be diversified away by investing in both Future Generation and IXUP 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 Future Generation and IXUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Generation Global and IXUP, you can compare the effects of market volatilities on Future Generation and IXUP 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 Future Generation with a short position of IXUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Generation and IXUP.
Diversification Opportunities for Future Generation and IXUP
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and IXUP is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Future Generation Global and IXUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXUP and Future Generation 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 Future Generation Global are associated (or correlated) with IXUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXUP has no effect on the direction of Future Generation i.e., Future Generation and IXUP go up and down completely randomly.
Pair Corralation between Future Generation and IXUP
Assuming the 90 days trading horizon Future Generation Global is expected to generate 0.13 times more return on investment than IXUP. However, Future Generation Global is 7.98 times less risky than IXUP. It trades about 0.11 of its potential returns per unit of risk. IXUP is currently generating about -0.03 per unit of risk. If you would invest 105.00 in Future Generation Global on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Future Generation Global or generate 32.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Generation Global vs. IXUP
Performance |
| Timeline |
| Future Generation Global |
| IXUP |
Future Generation and IXUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Generation and IXUP
The main advantage of trading using opposite Future Generation and IXUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Generation position performs unexpectedly, IXUP 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 IXUP will offset losses from the drop in IXUP's long position.| Future Generation vs. Pinnacle Investment Management | Future Generation vs. Singular Health Group | Future Generation vs. Aeon Metals | Future Generation vs. Capitol Health |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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