Correlation Between FOM Technologies and WindowMaster International
Can any of the company-specific risk be diversified away by investing in both FOM Technologies and WindowMaster International 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 FOM Technologies and WindowMaster International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOM Technologies AS and WindowMaster International AS, you can compare the effects of market volatilities on FOM Technologies and WindowMaster International 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 WindowMaster International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOM Technologies and WindowMaster International.
Diversification Opportunities for FOM Technologies and WindowMaster International
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOM and WindowMaster is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding FOM Technologies AS and WindowMaster International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WindowMaster 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 WindowMaster International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WindowMaster International has no effect on the direction of FOM Technologies i.e., FOM Technologies and WindowMaster International go up and down completely randomly.
Pair Corralation between FOM Technologies and WindowMaster International
Assuming the 90 days trading horizon FOM Technologies AS is expected to under-perform the WindowMaster International. In addition to that, FOM Technologies is 1.04 times more volatile than WindowMaster International AS. It trades about -0.09 of its total potential returns per unit of risk. WindowMaster International AS is currently generating about 0.04 per unit of volatility. If you would invest 600.00 in WindowMaster International AS on November 28, 2024 and sell it today you would earn a total of 228.00 from holding WindowMaster International AS or generate 38.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOM Technologies AS vs. WindowMaster International AS
Performance |
| Timeline |
| FOM Technologies |
| WindowMaster International |
FOM Technologies and WindowMaster International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOM Technologies and WindowMaster International
The main advantage of trading using opposite FOM Technologies and WindowMaster International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOM Technologies position performs unexpectedly, WindowMaster International 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 WindowMaster International will offset losses from the drop in WindowMaster International'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 |
| WindowMaster International vs. FOM Technologies AS | WindowMaster International vs. LED iBond International | WindowMaster International vs. BioPorto | WindowMaster International vs. Dataproces Group AS |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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