Correlation Between RETAIL FOOD and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and FANDIFI TECHNOLOGY.
Diversification Opportunities for RETAIL FOOD and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RETAIL and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between RETAIL FOOD and FANDIFI TECHNOLOGY
If you would invest 3.70 in RETAIL FOOD GROUP on August 29, 2024 and sell it today you would earn a total of 0.50 from holding RETAIL FOOD GROUP or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| FANDIFI TECHNOLOGY |
RETAIL FOOD and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and FANDIFI TECHNOLOGY
The main advantage of trading using opposite RETAIL FOOD and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc |
| FANDIFI TECHNOLOGY vs. CANON MARKETING JP | FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Vastned Retail NV | FANDIFI TECHNOLOGY vs. RETAIL FOOD 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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