Correlation Between Finexia Financial and Microequities Asset
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and Microequities Asset 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 Microequities Asset 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 Microequities Asset Management, you can compare the effects of market volatilities on Finexia Financial and Microequities Asset 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 Microequities Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Microequities Asset.
Diversification Opportunities for Finexia Financial and Microequities Asset
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Finexia and Microequities is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Microequities Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microequities Asset 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 Microequities Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microequities Asset has no effect on the direction of Finexia Financial i.e., Finexia Financial and Microequities Asset go up and down completely randomly.
Pair Corralation between Finexia Financial and Microequities Asset
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 1.65 times more return on investment than Microequities Asset. However, Finexia Financial is 1.65 times more volatile than Microequities Asset Management. It trades about 0.03 of its potential returns per unit of risk. Microequities Asset Management is currently generating about 0.0 per unit of risk. If you would invest 27.00 in Finexia Financial Group on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Finexia Financial Group or generate 14.81% 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. Microequities Asset Management
Performance |
| Timeline |
| Finexia Financial |
| Microequities Asset |
Finexia Financial and Microequities Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Microequities Asset
The main advantage of trading using opposite Finexia Financial and Microequities Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, Microequities Asset 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 Microequities Asset will offset losses from the drop in Microequities Asset's long position.| Finexia Financial vs. Champion Iron | Finexia Financial vs. Ridley | Finexia Financial vs. Peel Mining | Finexia Financial vs. Australian Dairy Farms |
| Microequities Asset vs. Champion Iron | Microequities Asset vs. Ridley | Microequities Asset vs. Peel Mining | Microequities Asset vs. Australian Dairy Farms |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |