Correlation Between Mind Technology and FAT Brands
Can any of the company-specific risk be diversified away by investing in both Mind Technology and FAT Brands 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 Mind Technology and FAT Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mind Technology Pref and FAT Brands, you can compare the effects of market volatilities on Mind Technology and FAT Brands 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 Mind Technology with a short position of FAT Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Technology and FAT Brands.
Diversification Opportunities for Mind Technology and FAT Brands
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mind and FAT is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology Pref and FAT Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAT Brands and Mind Technology 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 Mind Technology Pref are associated (or correlated) with FAT Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAT Brands has no effect on the direction of Mind Technology i.e., Mind Technology and FAT Brands go up and down completely randomly.
Pair Corralation between Mind Technology and FAT Brands
If you would invest 932.00 in FAT Brands on August 28, 2024 and sell it today you would earn a total of 22.00 from holding FAT Brands or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mind Technology Pref vs. FAT Brands
Performance |
| Timeline |
| Mind Technology Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FAT Brands |
Mind Technology and FAT Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mind Technology and FAT Brands
The main advantage of trading using opposite Mind Technology and FAT Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Technology position performs unexpectedly, FAT Brands 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 FAT Brands will offset losses from the drop in FAT Brands' long position.| Mind Technology vs. Kraken Robotics | Mind Technology vs. SaverOne 2014 Ltd | Mind Technology vs. Focus Universal | Mind Technology vs. Nanalysis Scientific Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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