Correlation Between NYSE Composite and Fatfish Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Fatfish Group 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 NYSE Composite and Fatfish Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fatfish Group Limited, you can compare the effects of market volatilities on NYSE Composite and Fatfish Group 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 NYSE Composite with a short position of Fatfish Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fatfish Group.
Diversification Opportunities for NYSE Composite and Fatfish Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Fatfish is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fatfish Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fatfish Group Limited and NYSE Composite 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 NYSE Composite are associated (or correlated) with Fatfish Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fatfish Group Limited has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fatfish Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Fatfish Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 16.11 times less return on investment than Fatfish Group. But when comparing it to its historical volatility, NYSE Composite is 17.65 times less risky than Fatfish Group. It trades about 0.1 of its potential returns per unit of risk. Fatfish Group Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.46 in Fatfish Group Limited on September 3, 2024 and sell it today you would earn a total of 1.08 from holding Fatfish Group Limited or generate 234.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
NYSE Composite vs. Fatfish Group Limited
Performance |
| Timeline |
NYSE Composite and Fatfish Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fatfish Group Limited
Pair trading matchups for Fatfish Group
Pair Trading with NYSE Composite and Fatfish Group
The main advantage of trading using opposite NYSE Composite and Fatfish Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Fatfish Group 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 Fatfish Group will offset losses from the drop in Fatfish Group's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Fatfish Group vs. Morgan Stanley | Fatfish Group vs. Goldman Sachs Group | Fatfish Group vs. Riot Blockchain | Fatfish Group vs. Marathon Digital Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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