Correlation Between FNB ETN and Centaur Bci
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By analyzing existing cross correlation between FNB ETN on and Centaur Bci Balanced, you can compare the effects of market volatilities on FNB ETN and Centaur Bci 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 Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Centaur Bci.
Diversification Opportunities for FNB ETN and Centaur Bci
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FNB and Centaur is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN on and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced 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 Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of FNB ETN i.e., FNB ETN and Centaur Bci go up and down completely randomly.
Pair Corralation between FNB ETN and Centaur Bci
Assuming the 90 days trading horizon FNB ETN on is expected to generate 1.91 times more return on investment than Centaur Bci. However, FNB ETN is 1.91 times more volatile than Centaur Bci Balanced. It trades about 0.11 of its potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.1 per unit of risk. If you would invest 114,200 in FNB ETN on on August 31, 2024 and sell it today you would earn a total of 54,100 from holding FNB ETN on or generate 47.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.74% |
| Values | Daily Returns |
FNB ETN on vs. Centaur Bci Balanced
Performance |
| Timeline |
| FNB ETN on |
| Centaur Bci Balanced |
FNB ETN and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNB ETN and Centaur Bci
The main advantage of trading using opposite FNB ETN and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB ETN position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
| Centaur Bci vs. 4d Bci Moderate | Centaur Bci vs. Coronation Global Optimum | Centaur Bci vs. Absa Multi managed Absolute | Centaur Bci vs. Coronation Balanced Plus |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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