Correlation Between Farmers Edge and Friendable
Can any of the company-specific risk be diversified away by investing in both Farmers Edge and Friendable 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 Farmers Edge and Friendable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmers Edge and Friendable, you can compare the effects of market volatilities on Farmers Edge and Friendable 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 Farmers Edge with a short position of Friendable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers Edge and Friendable.
Diversification Opportunities for Farmers Edge and Friendable
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Farmers and Friendable is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Farmers Edge and Friendable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Friendable and Farmers Edge 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 Farmers Edge are associated (or correlated) with Friendable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Friendable has no effect on the direction of Farmers Edge i.e., Farmers Edge and Friendable go up and down completely randomly.
Pair Corralation between Farmers Edge and Friendable
If you would invest 0.01 in Friendable on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Friendable or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Farmers Edge vs. Friendable
Performance |
| Timeline |
| Farmers Edge |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Friendable |
Farmers Edge and Friendable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmers Edge and Friendable
The main advantage of trading using opposite Farmers Edge and Friendable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers Edge position performs unexpectedly, Friendable 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 Friendable will offset losses from the drop in Friendable's long position.| Farmers Edge vs. RenoWorks Software | Farmers Edge vs. 01 Communique Laboratory | Farmers Edge vs. RESAAS Services | Farmers Edge vs. LifeSpeak |
| Friendable vs. HUMANA INC | Friendable vs. SCOR PK | Friendable vs. Aquagold International | Friendable vs. Barloworld Ltd ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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