Correlation Between Finance Of and New Amer
Can any of the company-specific risk be diversified away by investing in both Finance Of and New Amer 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 Finance Of and New Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finance of America and New Amer Energy, you can compare the effects of market volatilities on Finance Of and New Amer 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 Finance Of with a short position of New Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finance Of and New Amer.
Diversification Opportunities for Finance Of and New Amer
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finance and New is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Finance of America and New Amer Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Amer Energy and Finance Of 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 Finance of America are associated (or correlated) with New Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Amer Energy has no effect on the direction of Finance Of i.e., Finance Of and New Amer go up and down completely randomly.
Pair Corralation between Finance Of and New Amer
If you would invest 1,305 in Finance of America on August 27, 2024 and sell it today you would earn a total of 903.00 from holding Finance of America or generate 69.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Finance of America vs. New Amer Energy
Performance |
| Timeline |
| Finance of America |
| New Amer Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Finance Of and New Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finance Of and New Amer
The main advantage of trading using opposite Finance Of and New Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finance Of position performs unexpectedly, New Amer 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 New Amer will offset losses from the drop in New Amer's long position.| Finance Of vs. PowerUp Acquisition Corp | Finance Of vs. Aurora Innovation | Finance Of vs. HUMANA INC | Finance Of vs. Aquagold International |
| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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