Correlation Between Performance Food and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Performance Food and FANDIFI TECHNOLOGY 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 Performance Food and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on Performance Food and FANDIFI TECHNOLOGY 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 Performance Food with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and FANDIFI TECHNOLOGY.
Diversification Opportunities for Performance Food and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Performance and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and Performance Food 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 Performance Food Group are associated (or correlated) with FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of Performance Food i.e., Performance Food and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between Performance Food and FANDIFI TECHNOLOGY
Assuming the 90 days trading horizon Performance Food is expected to generate 1.78 times less return on investment than FANDIFI TECHNOLOGY. But when comparing it to its historical volatility, Performance Food Group is 5.42 times less risky than FANDIFI TECHNOLOGY. It trades about 0.11 of its potential returns per unit of risk. FANDIFI TECHNOLOGY P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.05 in FANDIFI TECHNOLOGY P on September 3, 2024 and sell it today you would earn a total of 0.00 from holding FANDIFI TECHNOLOGY P or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.34% |
| Values | Daily Returns |
Performance Food Group vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| Performance Food |
| FANDIFI TECHNOLOGY |
Performance Food and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and FANDIFI TECHNOLOGY
The main advantage of trading using opposite Performance Food and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| Performance Food vs. China BlueChemical | Performance Food vs. AIR PRODCHEMICALS | Performance Food vs. Siamgas And Petrochemicals | Performance Food vs. Sanyo Chemical Industries |
| FANDIFI TECHNOLOGY vs. GALENA MINING LTD | FANDIFI TECHNOLOGY vs. United Natural Foods | FANDIFI TECHNOLOGY vs. TYSON FOODS A | FANDIFI TECHNOLOGY vs. GRIFFIN MINING LTD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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