Correlation Between Future Retail and Spencers Retail
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By analyzing existing cross correlation between Future Retail Limited and Spencers Retail Limited, you can compare the effects of market volatilities on Future Retail and Spencers Retail 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 Future Retail with a short position of Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Retail and Spencers Retail.
Diversification Opportunities for Future Retail and Spencers Retail
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Future and Spencers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Retail Limited and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail and Future Retail 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 Future Retail Limited are associated (or correlated) with Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Future Retail i.e., Future Retail and Spencers Retail go up and down completely randomly.
Pair Corralation between Future Retail and Spencers Retail
Assuming the 90 days trading horizon Future Retail is expected to generate 7.26 times less return on investment than Spencers Retail. But when comparing it to its historical volatility, Future Retail Limited is 1.27 times less risky than Spencers Retail. It trades about 0.01 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,310 in Spencers Retail Limited on September 2, 2024 and sell it today you would earn a total of 2,247 from holding Spencers Retail Limited or generate 35.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 86.3% |
| Values | Daily Returns |
Future Retail Limited vs. Spencers Retail Limited
Performance |
| Timeline |
| Future Retail Limited |
| Spencers Retail |
Future Retail and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Retail and Spencers Retail
The main advantage of trading using opposite Future Retail and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Retail position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Future Retail vs. Kingfa Science Technology | Future Retail vs. Rico Auto Industries | Future Retail vs. GACM Technologies Limited | Future Retail vs. COSMO FIRST LIMITED |
| Spencers Retail vs. Kingfa Science Technology | Spencers Retail vs. Rico Auto Industries | Spencers Retail vs. GACM Technologies Limited | Spencers Retail vs. COSMO FIRST LIMITED |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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