Correlation Between FNB ETN and AfricaRhodium ETF
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By analyzing existing cross correlation between FNB ETN on and AfricaRhodium ETF, you can compare the effects of market volatilities on FNB ETN and AfricaRhodium ETF 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 FNB ETN with a short position of AfricaRhodium ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and AfricaRhodium ETF.
Diversification Opportunities for FNB ETN and AfricaRhodium ETF
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FNB and AfricaRhodium is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN on and AfricaRhodium ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AfricaRhodium ETF and FNB ETN 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 FNB ETN on are associated (or correlated) with AfricaRhodium ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AfricaRhodium ETF has no effect on the direction of FNB ETN i.e., FNB ETN and AfricaRhodium ETF go up and down completely randomly.
Pair Corralation between FNB ETN and AfricaRhodium ETF
Assuming the 90 days trading horizon FNB ETN on is expected to generate 1.37 times more return on investment than AfricaRhodium ETF. However, FNB ETN is 1.37 times more volatile than AfricaRhodium ETF. It trades about 0.17 of its potential returns per unit of risk. AfricaRhodium ETF is currently generating about -0.1 per unit of risk. If you would invest 167,100 in FNB ETN on on August 28, 2024 and sell it today you would earn a total of 6,300 from holding FNB ETN on or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
FNB ETN on vs. AfricaRhodium ETF
Performance |
| Timeline |
| FNB ETN on |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| AfricaRhodium ETF |
FNB ETN and AfricaRhodium ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNB ETN and AfricaRhodium ETF
The main advantage of trading using opposite FNB ETN and AfricaRhodium ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB ETN position performs unexpectedly, AfricaRhodium ETF 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 AfricaRhodium ETF will offset losses from the drop in AfricaRhodium ETF's long position.| FNB ETN vs. Centaur Bci Balanced | FNB ETN vs. Sabvest Capital | FNB ETN vs. Growthpoint Properties | FNB ETN vs. AfricaRhodium ETF |
| AfricaRhodium ETF vs. Europa Metals | AfricaRhodium ETF vs. British American Tobacco | AfricaRhodium ETF vs. Kap Industrial Holdings | AfricaRhodium ETF vs. Anglo American Platinum |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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