Correlation Between Kap Industrial and FNB ETN
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By analyzing existing cross correlation between Kap Industrial Holdings and FNB ETN on, you can compare the effects of market volatilities on Kap Industrial and FNB ETN 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 Kap Industrial with a short position of FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kap Industrial and FNB ETN.
Diversification Opportunities for Kap Industrial and FNB ETN
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kap and FNB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kap Industrial Holdings and FNB ETN on in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN on and Kap Industrial 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 Kap Industrial Holdings are associated (or correlated) with FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN on has no effect on the direction of Kap Industrial i.e., Kap Industrial and FNB ETN go up and down completely randomly.
Pair Corralation between Kap Industrial and FNB ETN
Assuming the 90 days trading horizon Kap Industrial is expected to generate 1.28 times less return on investment than FNB ETN. In addition to that, Kap Industrial is 2.52 times more volatile than FNB ETN on. It trades about 0.03 of its total potential returns per unit of risk. FNB ETN on is currently generating about 0.11 per unit of volatility. If you would invest 125,000 in FNB ETN on on August 31, 2024 and sell it today you would earn a total of 43,300 from holding FNB ETN on or generate 34.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.54% |
| Values | Daily Returns |
Kap Industrial Holdings vs. FNB ETN on
Performance |
| Timeline |
| Kap Industrial Holdings |
| FNB ETN on |
Kap Industrial and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kap Industrial and FNB ETN
The main advantage of trading using opposite Kap Industrial and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kap Industrial position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| Kap Industrial vs. HomeChoice Investments | Kap Industrial vs. Hosken Consolidated Investments | Kap Industrial vs. Astoria Investments | Kap Industrial vs. Trematon Capital Investments |
| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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