Correlation Between US Financial and Elixxer
Can any of the company-specific risk be diversified away by investing in both US Financial and Elixxer 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 US Financial and Elixxer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Financial 15 and Elixxer, you can compare the effects of market volatilities on US Financial and Elixxer 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 US Financial with a short position of Elixxer. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Financial and Elixxer.
Diversification Opportunities for US Financial and Elixxer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FTU-PB and Elixxer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Financial 15 and Elixxer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elixxer and US Financial 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 US Financial 15 are associated (or correlated) with Elixxer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elixxer has no effect on the direction of US Financial i.e., US Financial and Elixxer go up and down completely randomly.
Pair Corralation between US Financial and Elixxer
If you would invest 115.00 in Elixxer on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Elixxer or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Financial 15 vs. Elixxer
Performance |
| Timeline |
| US Financial 15 |
| Elixxer |
US Financial and Elixxer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Financial and Elixxer
The main advantage of trading using opposite US Financial and Elixxer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Financial position performs unexpectedly, Elixxer 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 Elixxer will offset losses from the drop in Elixxer's long position.| US Financial vs. North American Financial | US Financial vs. Prime Dividend Corp | US Financial vs. Canadian Life Companies | US Financial vs. Financial 15 Split |
| Elixxer vs. Endeavour Silver Corp | Elixxer vs. Andlauer Healthcare Gr | Elixxer vs. Leveljump Healthcare Corp | Elixxer vs. Reliq Health Technologies |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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