Correlation Between Mount Gibson and Finexia Financial
Can any of the company-specific risk be diversified away by investing in both Mount Gibson and Finexia Financial 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 Mount Gibson and Finexia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mount Gibson Iron and Finexia Financial Group, you can compare the effects of market volatilities on Mount Gibson and Finexia Financial 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 Mount Gibson with a short position of Finexia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mount Gibson and Finexia Financial.
Diversification Opportunities for Mount Gibson and Finexia Financial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mount and Finexia is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mount Gibson Iron and Finexia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finexia Financial and Mount Gibson 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 Mount Gibson Iron are associated (or correlated) with Finexia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finexia Financial has no effect on the direction of Mount Gibson i.e., Mount Gibson and Finexia Financial go up and down completely randomly.
Pair Corralation between Mount Gibson and Finexia Financial
Assuming the 90 days trading horizon Mount Gibson is expected to generate 2.1 times less return on investment than Finexia Financial. But when comparing it to its historical volatility, Mount Gibson Iron is 1.31 times less risky than Finexia Financial. It trades about 0.13 of its potential returns per unit of risk. Finexia Financial Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Finexia Financial Group on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Finexia Financial Group or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mount Gibson Iron vs. Finexia Financial Group
Performance |
| Timeline |
| Mount Gibson Iron |
| Finexia Financial |
Mount Gibson and Finexia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mount Gibson and Finexia Financial
The main advantage of trading using opposite Mount Gibson and Finexia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mount Gibson position performs unexpectedly, Finexia Financial 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 Finexia Financial will offset losses from the drop in Finexia Financial's long position.| Mount Gibson vs. Finexia Financial Group | Mount Gibson vs. Wt Financial Group | Mount Gibson vs. Dicker Data | Mount Gibson vs. Credit Clear |
| Finexia Financial vs. Wt Financial Group | Finexia Financial vs. MA Financial Group | Finexia Financial vs. Truscott Mining Corp | Finexia Financial vs. Perseus Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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