Correlation Between Keweenaw Land and Farmers
Can any of the company-specific risk be diversified away by investing in both Keweenaw Land and Farmers 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 Keweenaw Land and Farmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keweenaw Land Association and Farmers And Merchants, you can compare the effects of market volatilities on Keweenaw Land and Farmers 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 Keweenaw Land with a short position of Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keweenaw Land and Farmers.
Diversification Opportunities for Keweenaw Land and Farmers
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keweenaw and Farmers is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Keweenaw Land Association and Farmers And Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers And Merchants and Keweenaw Land 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 Keweenaw Land Association are associated (or correlated) with Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers And Merchants has no effect on the direction of Keweenaw Land i.e., Keweenaw Land and Farmers go up and down completely randomly.
Pair Corralation between Keweenaw Land and Farmers
Given the investment horizon of 90 days Keweenaw Land Association is expected to generate 6.39 times more return on investment than Farmers. However, Keweenaw Land is 6.39 times more volatile than Farmers And Merchants. It trades about 0.07 of its potential returns per unit of risk. Farmers And Merchants is currently generating about 0.25 per unit of risk. If you would invest 2,900 in Keweenaw Land Association on August 29, 2024 and sell it today you would earn a total of 900.00 from holding Keweenaw Land Association or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Keweenaw Land Association vs. Farmers And Merchants
Performance |
| Timeline |
| Keweenaw Land Association |
| Farmers And Merchants |
Keweenaw Land and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keweenaw Land and Farmers
The main advantage of trading using opposite Keweenaw Land and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keweenaw Land position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' long position.| Keweenaw Land vs. Anglo American plc | Keweenaw Land vs. Glencore PLC ADR | Keweenaw Land vs. Fortescue Metals Group | Keweenaw Land vs. South32 Limited |
| Farmers vs. First National Bank | Farmers vs. Farmers Merchants Bancorp | Farmers vs. Exchange Bank | Farmers vs. First National of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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