Correlation Between Federal Home and Asia Pptys
Can any of the company-specific risk be diversified away by investing in both Federal Home and Asia Pptys 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 Asia Pptys 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 Asia Pptys, you can compare the effects of market volatilities on Federal Home and Asia Pptys 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 Asia Pptys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Home and Asia Pptys.
Diversification Opportunities for Federal Home and Asia Pptys
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federal and Asia is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Federal Home Loan and Asia Pptys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pptys 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 Asia Pptys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pptys has no effect on the direction of Federal Home i.e., Federal Home and Asia Pptys go up and down completely randomly.
Pair Corralation between Federal Home and Asia Pptys
Given the investment horizon of 90 days Federal Home Loan is expected to generate 0.34 times more return on investment than Asia Pptys. However, Federal Home Loan is 2.9 times less risky than Asia Pptys. It trades about 0.22 of its potential returns per unit of risk. Asia Pptys is currently generating about 0.06 per unit of risk. If you would invest 109.00 in Federal Home Loan on November 2, 2024 and sell it today you would earn a total of 426.00 from holding Federal Home Loan or generate 390.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Federal Home Loan vs. Asia Pptys
Performance |
| Timeline |
| Federal Home Loan |
| Asia Pptys |
Federal Home and Asia Pptys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Home and Asia Pptys
The main advantage of trading using opposite Federal Home and Asia Pptys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Home position performs unexpectedly, Asia Pptys 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 Asia Pptys will offset losses from the drop in Asia Pptys' long position.| Federal Home vs. Loandepot | Federal Home vs. Mr Cooper Group | Federal Home vs. PennyMac Finl Svcs | Federal Home vs. Walker Dunlop |
| Asia Pptys vs. Aztec Land Comb | Asia Pptys vs. Ambase Corp | Asia Pptys vs. Agritek Holdings | Asia Pptys vs. Aroundtown SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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