Correlation Between IFAN Financial and King Resources
Can any of the company-specific risk be diversified away by investing in both IFAN Financial and King Resources 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 King Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFAN Financial and King Resources, you can compare the effects of market volatilities on IFAN Financial and King Resources 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 King Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFAN Financial and King Resources.
Diversification Opportunities for IFAN Financial and King Resources
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IFAN and King is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding IFAN Financial and King Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Resources 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 King Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Resources has no effect on the direction of IFAN Financial i.e., IFAN Financial and King Resources go up and down completely randomly.
Pair Corralation between IFAN Financial and King Resources
Given the investment horizon of 90 days IFAN Financial is expected to generate 1.2 times more return on investment than King Resources. However, IFAN Financial is 1.2 times more volatile than King Resources. It trades about 0.24 of its potential returns per unit of risk. King Resources is currently generating about 0.19 per unit of risk. If you would invest 0.01 in IFAN Financial on September 13, 2024 and sell it today you would earn a total of 0.01 from holding IFAN Financial or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
IFAN Financial vs. King Resources
Performance |
| Timeline |
| IFAN Financial |
| King Resources |
IFAN Financial and King Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFAN Financial and King Resources
The main advantage of trading using opposite IFAN Financial and King Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFAN Financial position performs unexpectedly, King Resources 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 King Resources will offset losses from the drop in King Resources' 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 |
| King Resources vs. Generation Alpha | King Resources vs. Dais Analytic Corp | King Resources vs. Polar Power | King Resources vs. Ozop Surgical Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |