Correlation Between FNP Technologies and Fill Up
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and Fill Up 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 FNP Technologies and Fill Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNP Technologies SA and Fill Up Media, you can compare the effects of market volatilities on FNP Technologies and Fill Up 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 FNP Technologies with a short position of Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Fill Up.
Diversification Opportunities for FNP Technologies and Fill Up
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FNP and Fill is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media and FNP Technologies 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 FNP Technologies SA are associated (or correlated) with Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of FNP Technologies i.e., FNP Technologies and Fill Up go up and down completely randomly.
Pair Corralation between FNP Technologies and Fill Up
Assuming the 90 days trading horizon FNP Technologies SA is expected to under-perform the Fill Up. In addition to that, FNP Technologies is 3.67 times more volatile than Fill Up Media. It trades about -0.13 of its total potential returns per unit of risk. Fill Up Media is currently generating about 0.02 per unit of volatility. If you would invest 600.00 in Fill Up Media on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Fill Up Media or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Fill Up Media
Performance |
| Timeline |
| FNP Technologies |
| Fill Up Media |
FNP Technologies and Fill Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Fill Up
The main advantage of trading using opposite FNP Technologies and Fill Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, Fill Up 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 Fill Up will offset losses from the drop in Fill Up's long position.| FNP Technologies vs. Novatech Industries SA | FNP Technologies vs. Metalliance SA | FNP Technologies vs. Bilendi | FNP Technologies vs. CMG Cleantech SA |
| Fill Up vs. Nacon Sa | Fill Up vs. Icape Holding | Fill Up vs. Grolleau SAS | Fill Up vs. Hydrogene De France |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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