Correlation Between IXUP and Future Generation
Can any of the company-specific risk be diversified away by investing in both IXUP and Future Generation 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 IXUP and Future Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IXUP and Future Generation Global, you can compare the effects of market volatilities on IXUP and Future Generation 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 IXUP with a short position of Future Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of IXUP and Future Generation.
Diversification Opportunities for IXUP and Future Generation
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IXUP and Future is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding IXUP and Future Generation Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Generation Global and IXUP 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 IXUP are associated (or correlated) with Future Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Generation Global has no effect on the direction of IXUP i.e., IXUP and Future Generation go up and down completely randomly.
Pair Corralation between IXUP and Future Generation
Assuming the 90 days trading horizon IXUP is expected to generate 10.39 times more return on investment than Future Generation. However, IXUP is 10.39 times more volatile than Future Generation Global. It trades about 0.04 of its potential returns per unit of risk. Future Generation Global is currently generating about 0.09 per unit of risk. If you would invest 1.10 in IXUP on September 1, 2024 and sell it today you would earn a total of 0.00 from holding IXUP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IXUP vs. Future Generation Global
Performance |
| Timeline |
| IXUP |
| Future Generation Global |
IXUP and Future Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IXUP and Future Generation
The main advantage of trading using opposite IXUP and Future Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IXUP position performs unexpectedly, Future Generation 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 Future Generation will offset losses from the drop in Future Generation's long position.The idea behind IXUP and Future Generation Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Future Generation vs. Pinnacle Investment Management | Future Generation vs. Singular Health Group | Future Generation vs. Aeon Metals | Future Generation vs. Capitol Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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