Correlation Between IFAN Financial and Eco Tek
Can any of the company-specific risk be diversified away by investing in both IFAN Financial and Eco Tek 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 Eco Tek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFAN Financial and Eco Tek Group, you can compare the effects of market volatilities on IFAN Financial and Eco Tek 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 Eco Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFAN Financial and Eco Tek.
Diversification Opportunities for IFAN Financial and Eco Tek
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IFAN and Eco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding IFAN Financial and Eco Tek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Tek Group 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 Eco Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Tek Group has no effect on the direction of IFAN Financial i.e., IFAN Financial and Eco Tek go up and down completely randomly.
Pair Corralation between IFAN Financial and Eco Tek
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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IFAN Financial vs. Eco Tek Group
Performance |
| Timeline |
| IFAN Financial |
| Eco Tek Group |
IFAN Financial and Eco Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFAN Financial and Eco Tek
The main advantage of trading using opposite IFAN Financial and Eco Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFAN Financial position performs unexpectedly, Eco Tek 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 Eco Tek will offset losses from the drop in Eco Tek'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 |
| Eco Tek vs. Edison Cobalt Corp | Eco Tek vs. Champion Bear Resources | Eco Tek vs. Avarone Metals | Eco Tek vs. Adriatic Metals PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |