Correlation Between Green PolkaDot and Federal National
Can any of the company-specific risk be diversified away by investing in both Green PolkaDot and Federal National 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 Green PolkaDot and Federal National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green PolkaDot Box and Federal National Mortgage, you can compare the effects of market volatilities on Green PolkaDot and Federal National 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 Green PolkaDot with a short position of Federal National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green PolkaDot and Federal National.
Diversification Opportunities for Green PolkaDot and Federal National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Federal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green PolkaDot Box and Federal National Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal National Mortgage and Green PolkaDot 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 Green PolkaDot Box are associated (or correlated) with Federal National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal National Mortgage has no effect on the direction of Green PolkaDot i.e., Green PolkaDot and Federal National go up and down completely randomly.
Pair Corralation between Green PolkaDot and Federal National
If you would invest 658,000 in Federal National Mortgage on September 4, 2024 and sell it today you would earn a total of 2,642,000 from holding Federal National Mortgage or generate 401.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Green PolkaDot Box vs. Federal National Mortgage
Performance |
| Timeline |
| Green PolkaDot Box |
| Federal National Mortgage |
Green PolkaDot and Federal National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green PolkaDot and Federal National
The main advantage of trading using opposite Green PolkaDot and Federal National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green PolkaDot position performs unexpectedly, Federal National 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 Federal National will offset losses from the drop in Federal National's long position.| Green PolkaDot vs. Federal National Mortgage | Green PolkaDot vs. Shinhan Financial Group | Green PolkaDot vs. Woori Financial Group | Green PolkaDot vs. Grupo Aval |
| Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan | Federal National vs. Federal Home Loan |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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