Correlation Between 9F and ARB IOT
Can any of the company-specific risk be diversified away by investing in both 9F and ARB IOT 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 9F and ARB IOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 9F Inc and ARB IOT Group, you can compare the effects of market volatilities on 9F and ARB IOT 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 9F with a short position of ARB IOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of 9F and ARB IOT.
Diversification Opportunities for 9F and ARB IOT
Very good diversification
The 3 months correlation between 9F and ARB is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding 9F Inc and ARB IOT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARB IOT Group and 9F 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 9F Inc are associated (or correlated) with ARB IOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARB IOT Group has no effect on the direction of 9F i.e., 9F and ARB IOT go up and down completely randomly.
Pair Corralation between 9F and ARB IOT
Considering the 90-day investment horizon 9F Inc is expected to generate 0.32 times more return on investment than ARB IOT. However, 9F Inc is 3.1 times less risky than ARB IOT. It trades about -0.14 of its potential returns per unit of risk. ARB IOT Group is currently generating about -0.06 per unit of risk. If you would invest 168.00 in 9F Inc on August 28, 2024 and sell it today you would lose (25.00) from holding 9F Inc or give up 14.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
9F Inc vs. ARB IOT Group
Performance |
| Timeline |
| 9F Inc |
| ARB IOT Group |
9F and ARB IOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 9F and ARB IOT
The main advantage of trading using opposite 9F and ARB IOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 9F position performs unexpectedly, ARB IOT 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 ARB IOT will offset losses from the drop in ARB IOT's long position.The idea behind 9F Inc and ARB IOT Group 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.| ARB IOT vs. Formula Systems 1985 | ARB IOT vs. CSP Inc | ARB IOT vs. CLARIVATE PLC | ARB IOT vs. BigBearai Holdings |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets |