Correlation Between Nice and Feat Fund
Can any of the company-specific risk be diversified away by investing in both Nice and Feat Fund 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 Nice and Feat Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice and Feat Fund Investments, you can compare the effects of market volatilities on Nice and Feat Fund 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 Nice with a short position of Feat Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice and Feat Fund.
Diversification Opportunities for Nice and Feat Fund
Good diversification
The 3 months correlation between Nice and Feat is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nice and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments and Nice 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 Nice are associated (or correlated) with Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Nice i.e., Nice and Feat Fund go up and down completely randomly.
Pair Corralation between Nice and Feat Fund
Assuming the 90 days trading horizon Nice is expected to generate 3.69 times more return on investment than Feat Fund. However, Nice is 3.69 times more volatile than Feat Fund Investments. It trades about 0.03 of its potential returns per unit of risk. Feat Fund Investments is currently generating about -0.1 per unit of risk. If you would invest 6,395,000 in Nice on August 30, 2024 and sell it today you would earn a total of 141,000 from holding Nice or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice vs. Feat Fund Investments
Performance |
| Timeline |
| Nice |
| Feat Fund Investments |
Nice and Feat Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice and Feat Fund
The main advantage of trading using opposite Nice and Feat Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice position performs unexpectedly, Feat Fund 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 Feat Fund will offset losses from the drop in Feat Fund's long position.| Nice vs. Elbit Systems | Nice vs. Tower Semiconductor | Nice vs. Bank Leumi Le Israel | Nice vs. Teva Pharmaceutical Industries |
| Feat Fund vs. Adgar Investments and | Feat Fund vs. Amot Investments | Feat Fund vs. Aura Investments | Feat Fund vs. Sofwave Medical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |