Correlation Between IFAN Financial and Gold Ent
Can any of the company-specific risk be diversified away by investing in both IFAN Financial and Gold Ent 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 Gold Ent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFAN Financial and Gold Ent Group, you can compare the effects of market volatilities on IFAN Financial and Gold Ent 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 Gold Ent. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFAN Financial and Gold Ent.
Diversification Opportunities for IFAN Financial and Gold Ent
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IFAN and Gold is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding IFAN Financial and Gold Ent Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Ent 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 Gold Ent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Ent Group has no effect on the direction of IFAN Financial i.e., IFAN Financial and Gold Ent go up and down completely randomly.
Pair Corralation between IFAN Financial and Gold Ent
If you would invest 0.01 in IFAN Financial on September 1, 2024 and sell it today you would earn a total of 0.02 from holding IFAN Financial or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IFAN Financial vs. Gold Ent Group
Performance |
| Timeline |
| IFAN Financial |
| Gold Ent Group |
IFAN Financial and Gold Ent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFAN Financial and Gold Ent
The main advantage of trading using opposite IFAN Financial and Gold Ent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFAN Financial position performs unexpectedly, Gold Ent 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 Gold Ent will offset losses from the drop in Gold Ent's long position.| IFAN Financial vs. American Leisure Holdings | IFAN Financial vs. Supurva Healthcare Group | IFAN Financial vs. China Health Management | IFAN Financial vs. Embrace Change Acquisition |
| Gold Ent vs. Atlas Technology Grp | Gold Ent vs. Absolute Health and | Gold Ent vs. Alpha Wastewater | Gold Ent vs. Supurva Healthcare Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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