Correlation Between Footway Group and Footway Group
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By analyzing existing cross correlation between Footway Group AB and Footway Group AB, you can compare the effects of market volatilities on Footway Group and Footway Group 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 Footway Group with a short position of Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Footway Group.
Diversification Opportunities for Footway Group and Footway Group
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Footway and Footway is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB and Footway Group 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 Footway Group AB are associated (or correlated) with Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of Footway Group i.e., Footway Group and Footway Group go up and down completely randomly.
Pair Corralation between Footway Group and Footway Group
Assuming the 90 days trading horizon Footway Group AB is expected to generate 1.33 times more return on investment than Footway Group. However, Footway Group is 1.33 times more volatile than Footway Group AB. It trades about 0.11 of its potential returns per unit of risk. Footway Group AB is currently generating about -0.14 per unit of risk. If you would invest 44.00 in Footway Group AB on August 25, 2024 and sell it today you would earn a total of 4.00 from holding Footway Group AB or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Footway Group AB vs. Footway Group AB
Performance |
| Timeline |
| Footway Group AB |
| Footway Group AB |
Footway Group and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and Footway Group
The main advantage of trading using opposite Footway Group and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, Footway Group 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 Footway Group will offset losses from the drop in Footway Group's long position.| Footway Group vs. Footway Group AB | Footway Group vs. Boozt AB | Footway Group vs. Clas Ohlson AB | Footway Group vs. KABE Group AB |
| Footway Group vs. Beowulf Mining PLC | Footway Group vs. Train Alliance Sweden | Footway Group vs. FormPipe Software AB | Footway Group vs. Flexion Mobile PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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