Correlation Between Pineapple Financial and Federal Home
Can any of the company-specific risk be diversified away by investing in both Pineapple Financial and Federal Home 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 Pineapple Financial and Federal Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pineapple Financial and Federal Home Loan, you can compare the effects of market volatilities on Pineapple Financial and Federal Home 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 Pineapple Financial with a short position of Federal Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pineapple Financial and Federal Home.
Diversification Opportunities for Pineapple Financial and Federal Home
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pineapple and Federal is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pineapple Financial and Federal Home Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Home Loan and Pineapple Financial 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 Pineapple Financial are associated (or correlated) with Federal Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Home Loan has no effect on the direction of Pineapple Financial i.e., Pineapple Financial and Federal Home go up and down completely randomly.
Pair Corralation between Pineapple Financial and Federal Home
Given the investment horizon of 90 days Pineapple Financial is expected to under-perform the Federal Home. In addition to that, Pineapple Financial is 1.71 times more volatile than Federal Home Loan. It trades about -0.03 of its total potential returns per unit of risk. Federal Home Loan is currently generating about 0.11 per unit of volatility. If you would invest 45.00 in Federal Home Loan on August 27, 2024 and sell it today you would earn a total of 265.00 from holding Federal Home Loan or generate 588.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.12% |
| Values | Daily Returns |
Pineapple Financial vs. Federal Home Loan
Performance |
| Timeline |
| Pineapple Financial |
| Federal Home Loan |
Pineapple Financial and Federal Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pineapple Financial and Federal Home
The main advantage of trading using opposite Pineapple Financial and Federal Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pineapple Financial position performs unexpectedly, Federal Home 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 Federal Home will offset losses from the drop in Federal Home's long position.| Pineapple Financial vs. Kandi Technologies Group | Pineapple Financial vs. Celsius Holdings | Pineapple Financial vs. SNDL Inc | Pineapple Financial vs. National Beverage Corp |
| Federal Home vs. Encore Capital Group | Federal Home vs. CNFinance Holdings | Federal Home vs. Greystone Housing Impact | Federal Home vs. Rocket Companies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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