Correlation Between Federal Home and SUMMARECON AGUNG
Can any of the company-specific risk be diversified away by investing in both Federal Home and SUMMARECON AGUNG 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 Federal Home and SUMMARECON AGUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Home Loan and SUMMARECON AGUNG, you can compare the effects of market volatilities on Federal Home and SUMMARECON AGUNG 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 Federal Home with a short position of SUMMARECON AGUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Home and SUMMARECON AGUNG.
Diversification Opportunities for Federal Home and SUMMARECON AGUNG
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federal and SUMMARECON is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Federal Home Loan and SUMMARECON AGUNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMMARECON AGUNG and Federal Home 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 Federal Home Loan are associated (or correlated) with SUMMARECON AGUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMMARECON AGUNG has no effect on the direction of Federal Home i.e., Federal Home and SUMMARECON AGUNG go up and down completely randomly.
Pair Corralation between Federal Home and SUMMARECON AGUNG
Assuming the 90 days horizon Federal Home is expected to generate 10.63 times less return on investment than SUMMARECON AGUNG. But when comparing it to its historical volatility, Federal Home Loan is 2.2 times less risky than SUMMARECON AGUNG. It trades about 0.01 of its potential returns per unit of risk. SUMMARECON AGUNG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.40 in SUMMARECON AGUNG on September 13, 2024 and sell it today you would lose (0.20) from holding SUMMARECON AGUNG or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Home Loan vs. SUMMARECON AGUNG
Performance |
| Timeline |
| Federal Home Loan |
| SUMMARECON AGUNG |
Federal Home and SUMMARECON AGUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Home and SUMMARECON AGUNG
The main advantage of trading using opposite Federal Home and SUMMARECON AGUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Home position performs unexpectedly, SUMMARECON AGUNG 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 SUMMARECON AGUNG will offset losses from the drop in SUMMARECON AGUNG's long position.| Federal Home vs. DIVERSIFIED ROYALTY | Federal Home vs. Superior Plus Corp | Federal Home vs. SIVERS SEMICONDUCTORS AB | Federal Home vs. Norsk Hydro ASA |
| SUMMARECON AGUNG vs. BORR DRILLING NEW | SUMMARECON AGUNG vs. PRECISION DRILLING P | SUMMARECON AGUNG vs. SHIP HEALTHCARE HLDGINC | SUMMARECON AGUNG vs. CHINA TONTINE WINES |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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