Correlation Between FNB ETN and Indexco Limited
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By analyzing existing cross correlation between FNB ETN on and Indexco Limited , you can compare the effects of market volatilities on FNB ETN and Indexco Limited 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 Indexco Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Indexco Limited.
Diversification Opportunities for FNB ETN and Indexco Limited
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FNB and Indexco is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN on and Indexco Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indexco Limited 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 Indexco Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indexco Limited has no effect on the direction of FNB ETN i.e., FNB ETN and Indexco Limited go up and down completely randomly.
Pair Corralation between FNB ETN and Indexco Limited
Assuming the 90 days trading horizon FNB ETN on is expected to under-perform the Indexco Limited. In addition to that, FNB ETN is 2.11 times more volatile than Indexco Limited . It trades about -0.08 of its total potential returns per unit of risk. Indexco Limited is currently generating about 0.42 per unit of volatility. If you would invest 421,700 in Indexco Limited on November 28, 2024 and sell it today you would earn a total of 18,700 from holding Indexco Limited or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 34.78% |
| Values | Daily Returns |
FNB ETN on vs. Indexco Limited
Performance |
| Timeline |
| FNB ETN on |
Risk-Adjusted Performance
OK
Weak | Strong |
| Indexco Limited |
FNB ETN and Indexco Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNB ETN and Indexco Limited
The main advantage of trading using opposite FNB ETN and Indexco Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB ETN position performs unexpectedly, Indexco Limited 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 Indexco Limited will offset losses from the drop in Indexco Limited's long position.| FNB ETN vs. FNB ETN on | FNB ETN vs. FNB ETN on | FNB ETN vs. FNB Government Inflation | FNB ETN vs. FNB ETN on |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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