Correlation Between Iffe Futura and Viscofan
Can any of the company-specific risk be diversified away by investing in both Iffe Futura and Viscofan 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 Iffe Futura and Viscofan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iffe Futura SA and Viscofan, you can compare the effects of market volatilities on Iffe Futura and Viscofan 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 Iffe Futura with a short position of Viscofan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iffe Futura and Viscofan.
Diversification Opportunities for Iffe Futura and Viscofan
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iffe and Viscofan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Iffe Futura SA and Viscofan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viscofan and Iffe Futura 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 Iffe Futura SA are associated (or correlated) with Viscofan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viscofan has no effect on the direction of Iffe Futura i.e., Iffe Futura and Viscofan go up and down completely randomly.
Pair Corralation between Iffe Futura and Viscofan
Assuming the 90 days trading horizon Iffe Futura SA is expected to generate 2.01 times more return on investment than Viscofan. However, Iffe Futura is 2.01 times more volatile than Viscofan. It trades about 0.02 of its potential returns per unit of risk. Viscofan is currently generating about 0.02 per unit of risk. If you would invest 58.00 in Iffe Futura SA on November 2, 2024 and sell it today you would earn a total of 8.00 from holding Iffe Futura SA or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Iffe Futura SA vs. Viscofan
Performance |
| Timeline |
| Iffe Futura SA |
| Viscofan |
Iffe Futura and Viscofan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iffe Futura and Viscofan
The main advantage of trading using opposite Iffe Futura and Viscofan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iffe Futura position performs unexpectedly, Viscofan 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 Viscofan will offset losses from the drop in Viscofan's long position.| Iffe Futura vs. Tier1 Technology SA | Iffe Futura vs. Inhome Prime Properties | Iffe Futura vs. NH Hoteles | Iffe Futura vs. Technomeca Aerospace 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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