Correlation Between New England and Frp Holdings
Can any of the company-specific risk be diversified away by investing in both New England and Frp Holdings 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 New England and Frp Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New England Realty and Frp Holdings Ord, you can compare the effects of market volatilities on New England and Frp Holdings 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 New England with a short position of Frp Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of New England and Frp Holdings.
Diversification Opportunities for New England and Frp Holdings
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and Frp is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding New England Realty and Frp Holdings Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frp Holdings Ord and New England 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 New England Realty are associated (or correlated) with Frp Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frp Holdings Ord has no effect on the direction of New England i.e., New England and Frp Holdings go up and down completely randomly.
Pair Corralation between New England and Frp Holdings
Considering the 90-day investment horizon New England Realty is expected to generate 33.36 times more return on investment than Frp Holdings. However, New England is 33.36 times more volatile than Frp Holdings Ord. It trades about 0.05 of its potential returns per unit of risk. Frp Holdings Ord is currently generating about 0.01 per unit of risk. If you would invest 6,868 in New England Realty on August 23, 2024 and sell it today you would earn a total of 1,381 from holding New England Realty or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.15% |
| Values | Daily Returns |
New England Realty vs. Frp Holdings Ord
Performance |
| Timeline |
| New England Realty |
| Frp Holdings Ord |
New England and Frp Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New England and Frp Holdings
The main advantage of trading using opposite New England and Frp Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New England position performs unexpectedly, Frp Holdings 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 Frp Holdings will offset losses from the drop in Frp Holdings' long position.| New England vs. The Intergroup | New England vs. Transcontinental Realty Investors | New England vs. American Realty Investors | New England vs. Gyrodyne Company of |
| Frp Holdings vs. Transcontinental Realty Investors | Frp Holdings vs. Anywhere Real Estate | Frp Holdings vs. Re Max Holding | Frp Holdings vs. New England Realty |
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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