Correlation Between Federal National and Green PolkaDot
Can any of the company-specific risk be diversified away by investing in both Federal National and Green PolkaDot 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 National and Green PolkaDot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal National Mortgage and Green PolkaDot Box, you can compare the effects of market volatilities on Federal National and Green PolkaDot 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 National with a short position of Green PolkaDot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal National and Green PolkaDot.
Diversification Opportunities for Federal National and Green PolkaDot
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federal and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federal National Mortgage and Green PolkaDot Box in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green PolkaDot Box and Federal National 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 National Mortgage are associated (or correlated) with Green PolkaDot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green PolkaDot Box has no effect on the direction of Federal National i.e., Federal National and Green PolkaDot go up and down completely randomly.
Pair Corralation between Federal National and Green PolkaDot
If you would invest 1,300,000 in Federal National Mortgage on September 5, 2024 and sell it today you would earn a total of 2,000,000 from holding Federal National Mortgage or generate 153.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federal National Mortgage vs. Green PolkaDot Box
Performance |
| Timeline |
| Federal National Mortgage |
| Green PolkaDot Box |
Federal National and Green PolkaDot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal National and Green PolkaDot
The main advantage of trading using opposite Federal National and Green PolkaDot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal National position performs unexpectedly, Green PolkaDot 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 Green PolkaDot will offset losses from the drop in Green PolkaDot's long position.| Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan |
| Green PolkaDot vs. Federal National Mortgage | Green PolkaDot vs. Shinhan Financial Group | Green PolkaDot vs. Woori Financial Group | Green PolkaDot vs. Grupo Aval |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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