Correlation Between FOM Technologies and LED IBond
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By analyzing existing cross correlation between FOM Technologies AS and LED iBond International, you can compare the effects of market volatilities on FOM Technologies and LED IBond 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 FOM Technologies with a short position of LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOM Technologies and LED IBond.
Diversification Opportunities for FOM Technologies and LED IBond
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FOM and LED is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding FOM Technologies AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International and FOM Technologies 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 FOM Technologies AS are associated (or correlated) with LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of FOM Technologies i.e., FOM Technologies and LED IBond go up and down completely randomly.
Pair Corralation between FOM Technologies and LED IBond
Assuming the 90 days trading horizon FOM Technologies AS is expected to under-perform the LED IBond. But the stock apears to be less risky and, when comparing its historical volatility, FOM Technologies AS is 8.01 times less risky than LED IBond. The stock trades about -0.41 of its potential returns per unit of risk. The LED iBond International is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 16.00 in LED iBond International on August 25, 2024 and sell it today you would earn a total of 16.00 from holding LED iBond International or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOM Technologies AS vs. LED iBond International
Performance |
| Timeline |
| FOM Technologies |
| LED iBond International |
FOM Technologies and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOM Technologies and LED IBond
The main advantage of trading using opposite FOM Technologies and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOM Technologies position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell AS |
| LED IBond vs. BankInvest Optima 30 | LED IBond vs. Gabriel Holding | LED IBond vs. Maj Invest Glob | LED IBond vs. Fundamental Invest Stock |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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