Correlation Between Fulcrum Metals and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals and Scandinavian Tobacco 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 Fulcrum Metals and Scandinavian Tobacco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and Scandinavian Tobacco Group, you can compare the effects of market volatilities on Fulcrum Metals and Scandinavian Tobacco 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 Fulcrum Metals with a short position of Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and Scandinavian Tobacco.
Diversification Opportunities for Fulcrum Metals and Scandinavian Tobacco
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fulcrum and Scandinavian is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco and Fulcrum 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 Fulcrum Metals PLC are associated (or correlated) with Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of Fulcrum Metals i.e., Fulcrum Metals and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between Fulcrum Metals and Scandinavian Tobacco
If you would invest 750.00 in Fulcrum Metals PLC on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Fulcrum Metals PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulcrum Metals PLC vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| Fulcrum Metals PLC |
| Scandinavian Tobacco |
Fulcrum Metals and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Metals and Scandinavian Tobacco
The main advantage of trading using opposite Fulcrum Metals and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| Fulcrum Metals vs. Givaudan SA | Fulcrum Metals vs. Antofagasta PLC | Fulcrum Metals vs. Ferrexpo PLC | Fulcrum Metals vs. Atalaya Mining |
| Scandinavian Tobacco vs. Aurora Investment Trust | Scandinavian Tobacco vs. Orient Telecoms | Scandinavian Tobacco vs. Cairo Communication SpA | Scandinavian Tobacco vs. Blackstone Loan Financing |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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