Correlation Between Monde Nissin and First Abacus
Can any of the company-specific risk be diversified away by investing in both Monde Nissin and First Abacus 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 Monde Nissin and First Abacus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monde Nissin Corp and First Abacus Financial, you can compare the effects of market volatilities on Monde Nissin and First Abacus 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 Monde Nissin with a short position of First Abacus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monde Nissin and First Abacus.
Diversification Opportunities for Monde Nissin and First Abacus
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monde and First is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Monde Nissin Corp and First Abacus Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Abacus Financial and Monde Nissin 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 Monde Nissin Corp are associated (or correlated) with First Abacus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Abacus Financial has no effect on the direction of Monde Nissin i.e., Monde Nissin and First Abacus go up and down completely randomly.
Pair Corralation between Monde Nissin and First Abacus
If you would invest 69.00 in First Abacus Financial on August 28, 2024 and sell it today you would earn a total of 0.00 from holding First Abacus Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Monde Nissin Corp vs. First Abacus Financial
Performance |
| Timeline |
| Monde Nissin Corp |
| First Abacus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Monde Nissin and First Abacus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monde Nissin and First Abacus
The main advantage of trading using opposite Monde Nissin and First Abacus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monde Nissin position performs unexpectedly, First Abacus 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 First Abacus will offset losses from the drop in First Abacus' long position.| Monde Nissin vs. Philex Mining Corp | Monde Nissin vs. Alliance Select Foods | Monde Nissin vs. Atlas Consolidated Mining | Monde Nissin vs. Cebu Air Preferred |
| First Abacus vs. Bright Kindle Resources | First Abacus vs. Allhome Corp | First Abacus vs. Jollibee Foods Corp | First Abacus vs. LFM Properties 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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