Correlation Between FNB Government and FNB ETN
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By analyzing existing cross correlation between FNB Government Inflation and FNB ETN JPMORGQ, you can compare the effects of market volatilities on FNB Government and FNB ETN 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 FNB Government with a short position of FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB Government and FNB ETN.
Diversification Opportunities for FNB Government and FNB ETN
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FNB and FNB is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding FNB Government Inflation and FNB ETN JPMORGQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN JPMORGQ and FNB Government 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 FNB Government Inflation are associated (or correlated) with FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN JPMORGQ has no effect on the direction of FNB Government i.e., FNB Government and FNB ETN go up and down completely randomly.
Pair Corralation between FNB Government and FNB ETN
Assuming the 90 days trading horizon FNB Government is expected to generate 39.06 times less return on investment than FNB ETN. But when comparing it to its historical volatility, FNB Government Inflation is 6.81 times less risky than FNB ETN. It trades about 0.03 of its potential returns per unit of risk. FNB ETN JPMORGQ is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 231,400 in FNB ETN JPMORGQ on September 3, 2024 and sell it today you would earn a total of 33,400 from holding FNB ETN JPMORGQ or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.25% |
| Values | Daily Returns |
FNB Government Inflation vs. FNB ETN JPMORGQ
Performance |
| Timeline |
| FNB Government Inflation |
| FNB ETN JPMORGQ |
FNB Government and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNB Government and FNB ETN
The main advantage of trading using opposite FNB Government and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB Government position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| FNB Government vs. Libstar Holdings | FNB Government vs. City Lodge Hotels | FNB Government vs. African Media Entertainment | FNB Government vs. Europa Metals |
| FNB ETN vs. FNB ETN on | FNB ETN vs. FNB ETN GSACHSQ | FNB ETN vs. FNB ETN on | FNB ETN vs. FNB Government Inflation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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