Correlation Between FNP Technologies and Fiducial Office
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and Fiducial Office 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 Fiducial Office 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 Fiducial Office Solutions, you can compare the effects of market volatilities on FNP Technologies and Fiducial Office 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 Fiducial Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Fiducial Office.
Diversification Opportunities for FNP Technologies and Fiducial Office
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FNP and Fiducial is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and Fiducial Office Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiducial Office Solutions 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 Fiducial Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiducial Office Solutions has no effect on the direction of FNP Technologies i.e., FNP Technologies and Fiducial Office go up and down completely randomly.
Pair Corralation between FNP Technologies and Fiducial Office
If you would invest 2,800 in Fiducial Office Solutions on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Fiducial Office Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Fiducial Office Solutions
Performance |
| Timeline |
| FNP Technologies |
| Fiducial Office Solutions |
FNP Technologies and Fiducial Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Fiducial Office
The main advantage of trading using opposite FNP Technologies and Fiducial Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, Fiducial Office 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 Fiducial Office will offset losses from the drop in Fiducial Office's long position.| FNP Technologies vs. Novatech Industries SA | FNP Technologies vs. Metalliance SA | FNP Technologies vs. Bilendi | FNP Technologies vs. CMG Cleantech SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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