Correlation Between Finexia Financial and Health
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and Health 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 Health 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 Health and Plant, you can compare the effects of market volatilities on Finexia Financial and Health 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 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Health.
Diversification Opportunities for Finexia Financial and Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finexia and Health is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Health and Plant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health and Plant 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 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health and Plant has no effect on the direction of Finexia Financial i.e., Finexia Financial and Health go up and down completely randomly.
Pair Corralation between Finexia Financial and Health
If you would invest 28.00 in Finexia Financial Group on November 1, 2024 and sell it today you would earn a total of 1.00 from holding Finexia Financial Group or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Health and Plant
Performance |
| Timeline |
| Finexia Financial |
| Health and Plant |
Finexia Financial and Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Health
The main advantage of trading using opposite Finexia Financial and Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, Health 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 Health will offset losses from the drop in Health's long position.| Finexia Financial vs. Ecofibre | Finexia Financial vs. iShares Global Healthcare | Finexia Financial vs. Australian Dairy Farms | Finexia Financial vs. Adriatic Metals Plc |
| Health vs. Accent Resources NL | Health vs. Hutchison Telecommunications | Health vs. Energy Resources | Health vs. GO2 People |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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