Correlation Between IMPERIAL TOBACCO and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both IMPERIAL TOBACCO and FANDIFI TECHNOLOGY 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 IMPERIAL TOBACCO and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMPERIAL TOBACCO and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on IMPERIAL TOBACCO and FANDIFI TECHNOLOGY 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 IMPERIAL TOBACCO with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMPERIAL TOBACCO and FANDIFI TECHNOLOGY.
Diversification Opportunities for IMPERIAL TOBACCO and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMPERIAL and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMPERIAL TOBACCO and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO are associated (or correlated) with FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of IMPERIAL TOBACCO i.e., IMPERIAL TOBACCO and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between IMPERIAL TOBACCO and FANDIFI TECHNOLOGY
If you would invest 2,708 in IMPERIAL TOBACCO on September 1, 2024 and sell it today you would earn a total of 371.00 from holding IMPERIAL TOBACCO or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IMPERIAL TOBACCO vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| IMPERIAL TOBACCO |
| FANDIFI TECHNOLOGY |
IMPERIAL TOBACCO and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMPERIAL TOBACCO and FANDIFI TECHNOLOGY
The main advantage of trading using opposite IMPERIAL TOBACCO and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMPERIAL TOBACCO position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| IMPERIAL TOBACCO vs. INDOFOOD AGRI RES | IMPERIAL TOBACCO vs. AUSTEVOLL SEAFOOD | IMPERIAL TOBACCO vs. CAL MAINE FOODS | IMPERIAL TOBACCO vs. SALESFORCE INC CDR |
| FANDIFI TECHNOLOGY vs. SAP SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings | FANDIFI TECHNOLOGY vs. Origin Agritech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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