Correlation Between IFAN Financial and American Leisure
Can any of the company-specific risk be diversified away by investing in both IFAN Financial and American Leisure 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 IFAN Financial and American Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFAN Financial and American Leisure Holdings, you can compare the effects of market volatilities on IFAN Financial and American Leisure 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 IFAN Financial with a short position of American Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFAN Financial and American Leisure.
Diversification Opportunities for IFAN Financial and American Leisure
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between IFAN and American is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding IFAN Financial and American Leisure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Leisure Holdings and IFAN 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 IFAN Financial are associated (or correlated) with American Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Leisure Holdings has no effect on the direction of IFAN Financial i.e., IFAN Financial and American Leisure go up and down completely randomly.
Pair Corralation between IFAN Financial and American Leisure
Given the investment horizon of 90 days IFAN Financial is expected to generate 1.25 times more return on investment than American Leisure. However, IFAN Financial is 1.25 times more volatile than American Leisure Holdings. It trades about 0.12 of its potential returns per unit of risk. American Leisure Holdings is currently generating about 0.07 per unit of risk. If you would invest 0.01 in IFAN Financial on November 27, 2024 and sell it today you would earn a total of 0.00 from holding IFAN Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IFAN Financial vs. American Leisure Holdings
Performance |
| Timeline |
| IFAN Financial |
| American Leisure Holdings |
IFAN Financial and American Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFAN Financial and American Leisure
The main advantage of trading using opposite IFAN Financial and American Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFAN Financial position performs unexpectedly, American Leisure 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 American Leisure will offset losses from the drop in American Leisure's long position.| IFAN Financial vs. First Colombia Gold | IFAN Financial vs. Eline Entertainment Group | IFAN Financial vs. All American Gld | IFAN Financial vs. Green Leaf Innovations |
| American Leisure vs. Absolute Health and | American Leisure vs. Supurva Healthcare Group | American Leisure vs. Alpha Wastewater | American Leisure vs. CTR Investments Consulting |
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 CEOs Directory module to screen CEOs from public companies around the world.
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