Correlation Between Federal Home and Pineapple Financial
Can any of the company-specific risk be diversified away by investing in both Federal Home and Pineapple 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 Federal Home and Pineapple Financial 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 Pineapple Financial, you can compare the effects of market volatilities on Federal Home and Pineapple 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 Federal Home with a short position of Pineapple Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Home and Pineapple Financial.
Diversification Opportunities for Federal Home and Pineapple Financial
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federal and Pineapple is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Federal Home Loan and Pineapple Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pineapple Financial 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 Pineapple Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pineapple Financial has no effect on the direction of Federal Home i.e., Federal Home and Pineapple Financial go up and down completely randomly.
Pair Corralation between Federal Home and Pineapple Financial
Given the investment horizon of 90 days Federal Home Loan is expected to generate 1.3 times more return on investment than Pineapple Financial. However, Federal Home is 1.3 times more volatile than Pineapple Financial. It trades about 0.45 of its potential returns per unit of risk. Pineapple Financial is currently generating about -0.12 per unit of risk. If you would invest 137.00 in Federal Home Loan on August 28, 2024 and sell it today you would earn a total of 218.00 from holding Federal Home Loan or generate 159.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Home Loan vs. Pineapple Financial
Performance |
| Timeline |
| Federal Home Loan |
| Pineapple Financial |
Federal Home and Pineapple Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Home and Pineapple Financial
The main advantage of trading using opposite Federal Home and Pineapple Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Home position performs unexpectedly, Pineapple 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 Pineapple Financial will offset losses from the drop in Pineapple Financial's long position.| Federal Home vs. Encore Capital Group | Federal Home vs. CNFinance Holdings | Federal Home vs. Greystone Housing Impact | Federal Home vs. Rocket Companies |
| Pineapple Financial vs. Kandi Technologies Group | Pineapple Financial vs. Celsius Holdings | Pineapple Financial vs. SNDL Inc | Pineapple Financial vs. National Beverage Corp |
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..
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