Correlation Between Finexia Financial and De Grey
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and De Grey 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 Finexia Financial and De Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and De Grey Mining, you can compare the effects of market volatilities on Finexia Financial and De Grey 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 Finexia Financial with a short position of De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and De Grey.
Diversification Opportunities for Finexia Financial and De Grey
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Finexia and DEG is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Finexia Financial i.e., Finexia Financial and De Grey go up and down completely randomly.
Pair Corralation between Finexia Financial and De Grey
Assuming the 90 days trading horizon Finexia Financial is expected to generate 3.09 times less return on investment than De Grey. In addition to that, Finexia Financial is 1.38 times more volatile than De Grey Mining. It trades about 0.02 of its total potential returns per unit of risk. De Grey Mining is currently generating about 0.09 per unit of volatility. If you would invest 118.00 in De Grey Mining on November 3, 2024 and sell it today you would earn a total of 83.00 from holding De Grey Mining or generate 70.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. De Grey Mining
Performance |
| Timeline |
| Finexia Financial |
| De Grey Mining |
Finexia Financial and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and De Grey
The main advantage of trading using opposite Finexia Financial and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| Finexia Financial vs. MetalsGrove Mining | Finexia Financial vs. Stelar Metals | Finexia Financial vs. EMvision Medical Devices | Finexia Financial vs. Dalaroo Metals |
| De Grey vs. Autosports Group | De Grey vs. Lykos Metals | De Grey vs. Aristocrat Leisure | De Grey vs. Dalaroo Metals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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