Correlation Between Future Metals and 4Imprint Group
Can any of the company-specific risk be diversified away by investing in both Future Metals and 4Imprint Group 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 Metals and 4Imprint Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Metals NL and 4Imprint Group Plc, you can compare the effects of market volatilities on Future Metals and 4Imprint Group 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 Metals with a short position of 4Imprint Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Metals and 4Imprint Group.
Diversification Opportunities for Future Metals and 4Imprint Group
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Future and 4Imprint is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Future Metals NL and 4Imprint Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Imprint Group Plc and Future Metals 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 Metals NL are associated (or correlated) with 4Imprint Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Imprint Group Plc has no effect on the direction of Future Metals i.e., Future Metals and 4Imprint Group go up and down completely randomly.
Pair Corralation between Future Metals and 4Imprint Group
Assuming the 90 days trading horizon Future Metals NL is expected to under-perform the 4Imprint Group. In addition to that, Future Metals is 1.28 times more volatile than 4Imprint Group Plc. It trades about -0.29 of its total potential returns per unit of risk. 4Imprint Group Plc is currently generating about 0.03 per unit of volatility. If you would invest 501,000 in 4Imprint Group Plc on September 5, 2024 and sell it today you would earn a total of 4,000 from holding 4Imprint Group Plc or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Metals NL vs. 4Imprint Group Plc
Performance |
| Timeline |
| Future Metals NL |
| 4Imprint Group Plc |
Future Metals and 4Imprint Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Metals and 4Imprint Group
The main advantage of trading using opposite Future Metals and 4Imprint Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Metals position performs unexpectedly, 4Imprint Group 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 4Imprint Group will offset losses from the drop in 4Imprint Group's long position.| Future Metals vs. Microchip Technology | Future Metals vs. Silvercorp Metals | Future Metals vs. Celebrus Technologies plc | Future Metals vs. DXC Technology Co |
| 4Imprint Group vs. Odyssean Investment Trust | 4Imprint Group vs. Eastman Chemical Co | 4Imprint Group vs. Monks Investment Trust | 4Imprint Group vs. Taylor Maritime Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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