Correlation Between Locafy and Fang Holdings
Can any of the company-specific risk be diversified away by investing in both Locafy and Fang Holdings 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 Locafy and Fang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locafy Limited and Fang Holdings, you can compare the effects of market volatilities on Locafy and Fang Holdings 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 Locafy with a short position of Fang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locafy and Fang Holdings.
Diversification Opportunities for Locafy and Fang Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Locafy and Fang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Locafy Limited and Fang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fang Holdings and Locafy 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 Locafy Limited are associated (or correlated) with Fang Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fang Holdings has no effect on the direction of Locafy i.e., Locafy and Fang Holdings go up and down completely randomly.
Pair Corralation between Locafy and Fang Holdings
If you would invest 797.00 in Locafy Limited on November 18, 2024 and sell it today you would earn a total of 4,200 from holding Locafy Limited or generate 526.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Locafy Limited vs. Fang Holdings
Performance |
| Timeline |
| Locafy Limited |
| Fang Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Locafy and Fang Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locafy and Fang Holdings
The main advantage of trading using opposite Locafy and Fang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locafy position performs unexpectedly, Fang Holdings 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 Fang Holdings will offset losses from the drop in Fang Holdings' long position.| Locafy vs. Locafy | Locafy vs. Rail Vision Ltd | Locafy vs. Heartbeam Warrant | Locafy vs. Iveda Solutions Warrant |
| Fang Holdings vs. China Finance Online | Fang Holdings vs. Stingray Group | Fang Holdings vs. ManifestSeven 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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