Correlation Between FNB ETN and Europa Metals
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By analyzing existing cross correlation between FNB ETN on and Europa Metals, you can compare the effects of market volatilities on FNB ETN and Europa Metals 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 Europa Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB ETN and Europa Metals.
Diversification Opportunities for FNB ETN and Europa Metals
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FNB and Europa is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding FNB ETN on and Europa Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europa Metals 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 Europa Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europa Metals has no effect on the direction of FNB ETN i.e., FNB ETN and Europa Metals go up and down completely randomly.
Pair Corralation between FNB ETN and Europa Metals
Assuming the 90 days trading horizon FNB ETN on is expected to generate 0.21 times more return on investment than Europa Metals. However, FNB ETN on is 4.8 times less risky than Europa Metals. It trades about 0.17 of its potential returns per unit of risk. Europa Metals is currently generating about 0.02 per unit of risk. If you would invest 87,100 in FNB ETN on on September 2, 2024 and sell it today you would earn a total of 83,700 from holding FNB ETN on or generate 96.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.21% |
| Values | Daily Returns |
FNB ETN on vs. Europa Metals
Performance |
| Timeline |
| FNB ETN on |
| Europa Metals |
FNB ETN and Europa Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNB ETN and Europa Metals
The main advantage of trading using opposite FNB ETN and Europa Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB ETN position performs unexpectedly, Europa Metals 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 Europa Metals will offset losses from the drop in Europa Metals' long position.| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
| Europa Metals vs. RCL Foods | Europa Metals vs. Hosken Consolidated Investments | Europa Metals vs. eMedia Holdings Limited | Europa Metals vs. Trematon Capital Investments |
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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