Correlation Between Finexia Financial and Olivers Real
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and Olivers Real 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 Olivers Real 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 Olivers Real Food, you can compare the effects of market volatilities on Finexia Financial and Olivers Real 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 Olivers Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Olivers Real.
Diversification Opportunities for Finexia Financial and Olivers Real
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Finexia and Olivers is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Olivers Real Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olivers Real Food 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 Olivers Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olivers Real Food has no effect on the direction of Finexia Financial i.e., Finexia Financial and Olivers Real go up and down completely randomly.
Pair Corralation between Finexia Financial and Olivers Real
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 0.51 times more return on investment than Olivers Real. However, Finexia Financial Group is 1.97 times less risky than Olivers Real. It trades about 0.22 of its potential returns per unit of risk. Olivers Real Food is currently generating about -0.19 per unit of risk. If you would invest 28.00 in Finexia Financial Group on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Finexia Financial Group or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Olivers Real Food
Performance |
| Timeline |
| Finexia Financial |
| Olivers Real Food |
Finexia Financial and Olivers Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Olivers Real
The main advantage of trading using opposite Finexia Financial and Olivers Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, Olivers Real 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 Olivers Real will offset losses from the drop in Olivers Real's long position.| Finexia Financial vs. Audio Pixels Holdings | Finexia Financial vs. Iodm | Finexia Financial vs. Nsx | Finexia Financial vs. TTG Fintech |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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