Correlation Between FINCORP INVESTMENT and NEW MAURITIUS
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By analyzing existing cross correlation between FINCORP INVESTMENT LTD and NEW MAURITIUS HOTELS, you can compare the effects of market volatilities on FINCORP INVESTMENT and NEW MAURITIUS 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 FINCORP INVESTMENT with a short position of NEW MAURITIUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FINCORP INVESTMENT and NEW MAURITIUS.
Diversification Opportunities for FINCORP INVESTMENT and NEW MAURITIUS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FINCORP and NEW is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding FINCORP INVESTMENT LTD and NEW MAURITIUS HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW MAURITIUS HOTELS and FINCORP INVESTMENT 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 FINCORP INVESTMENT LTD are associated (or correlated) with NEW MAURITIUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW MAURITIUS HOTELS has no effect on the direction of FINCORP INVESTMENT i.e., FINCORP INVESTMENT and NEW MAURITIUS go up and down completely randomly.
Pair Corralation between FINCORP INVESTMENT and NEW MAURITIUS
Assuming the 90 days trading horizon FINCORP INVESTMENT is expected to generate 6.5 times less return on investment than NEW MAURITIUS. But when comparing it to its historical volatility, FINCORP INVESTMENT LTD is 1.42 times less risky than NEW MAURITIUS. It trades about 0.02 of its potential returns per unit of risk. NEW MAURITIUS HOTELS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 860.00 in NEW MAURITIUS HOTELS on August 28, 2024 and sell it today you would earn a total of 560.00 from holding NEW MAURITIUS HOTELS or generate 65.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FINCORP INVESTMENT LTD vs. NEW MAURITIUS HOTELS
Performance |
| Timeline |
| FINCORP INVESTMENT LTD |
| NEW MAURITIUS HOTELS |
FINCORP INVESTMENT and NEW MAURITIUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FINCORP INVESTMENT and NEW MAURITIUS
The main advantage of trading using opposite FINCORP INVESTMENT and NEW MAURITIUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FINCORP INVESTMENT position performs unexpectedly, NEW MAURITIUS 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 NEW MAURITIUS will offset losses from the drop in NEW MAURITIUS's long position.| FINCORP INVESTMENT vs. MCB GROUP LTD | FINCORP INVESTMENT vs. LOTTOTECH LTD | FINCORP INVESTMENT vs. NEW MAURITIUS HOTELS | FINCORP INVESTMENT vs. MIWA SUGAR LIMITED |
| NEW MAURITIUS vs. AGAPE GLOBAL INVESTMENTS | NEW MAURITIUS vs. HOTELEST LTD | NEW MAURITIUS vs. PHOENIX INVESTMENT PANY | NEW MAURITIUS vs. CIM FINANCIAL SERVICES |
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 Stocks Directory module to find actively traded stocks across global markets.
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