Correlation Between FleetPartners and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both FleetPartners and Actinogen Medical 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 FleetPartners and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FleetPartners Group and Actinogen Medical, you can compare the effects of market volatilities on FleetPartners and Actinogen Medical 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 FleetPartners with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FleetPartners and Actinogen Medical.
Diversification Opportunities for FleetPartners and Actinogen Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between FleetPartners and Actinogen is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FleetPartners Group and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and FleetPartners 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 FleetPartners Group are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of FleetPartners i.e., FleetPartners and Actinogen Medical go up and down completely randomly.
Pair Corralation between FleetPartners and Actinogen Medical
Assuming the 90 days trading horizon FleetPartners is expected to generate 4.64 times less return on investment than Actinogen Medical. But when comparing it to its historical volatility, FleetPartners Group is 2.35 times less risky than Actinogen Medical. It trades about 0.1 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Actinogen Medical on September 14, 2024 and sell it today you would earn a total of 0.50 from holding Actinogen Medical or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FleetPartners Group vs. Actinogen Medical
Performance |
| Timeline |
| FleetPartners Group |
| Actinogen Medical |
FleetPartners and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FleetPartners and Actinogen Medical
The main advantage of trading using opposite FleetPartners and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FleetPartners position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| FleetPartners vs. Credit Clear | FleetPartners vs. Bell Financial Group | FleetPartners vs. Prime Financial Group | FleetPartners vs. Finexia Financial Group |
| Actinogen Medical vs. My Foodie Box | Actinogen Medical vs. Dicker Data | Actinogen Medical vs. Dalaroo Metals | Actinogen Medical vs. Hutchison Telecommunications |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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