Correlation Between First Pacific and Fraser
Can any of the company-specific risk be diversified away by investing in both First Pacific and Fraser 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 First Pacific and Fraser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Pacific and Fraser and Neave, you can compare the effects of market volatilities on First Pacific and Fraser 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 First Pacific with a short position of Fraser. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Pacific and Fraser.
Diversification Opportunities for First Pacific and Fraser
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Fraser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Pacific and Fraser and Neave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fraser and Neave and First Pacific 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 First Pacific are associated (or correlated) with Fraser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fraser and Neave has no effect on the direction of First Pacific i.e., First Pacific and Fraser go up and down completely randomly.
Pair Corralation between First Pacific and Fraser
If you would invest 426.00 in Fraser and Neave on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Fraser and Neave or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
First Pacific vs. Fraser and Neave
Performance |
| Timeline |
| First Pacific |
| Fraser and Neave |
First Pacific and Fraser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Pacific and Fraser
The main advantage of trading using opposite First Pacific and Fraser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Pacific position performs unexpectedly, Fraser 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 Fraser will offset losses from the drop in Fraser's long position.| First Pacific vs. BRF SA ADR | First Pacific vs. Flowers Foods | First Pacific vs. Premier Foods Plc | First Pacific vs. Torque Lifestyle Brands |
| Fraser vs. ConAgra Foods | Fraser vs. McCormick Company Incorporated | Fraser vs. Campbell Soup | Fraser vs. Kellanova |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
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| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |